| Halliburton Energy Services |
|
|
| Type |
Public (NYSE: HAL) |
| Founded |
1919, Dallas, Texas, U.S. by Erle Halliburton |
| Headquarters |
Houston, Texas, USA
Dubai, United Arab Emirates |
| Key people |
David J. Lesar Chairman/CEO |
| Industry |
Oil well Services & Equipment |
| Products |
Technical services to the petroleum industry; Construction |
| Revenue |
▲$15. A public company usually refers to a company that is permitted to offer its registered securities ( Stock, bonds, etc The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. Texas ( is a state geographically located in the South Central United States and is also known as the Lone Star State. The United States of America —commonly referred to as the Erle Palmer Halliburton ( September 22, 1892, near Henning, Tennessee - October 13, 1957 in Los Angeles) and The United States of America —commonly referred to as the Dubai (in دبيّ,) is one of the seven emirates and most populous city of the United Arab Emirates (UAE David J Lesar, is Chairman, President, and Chief Executive Officer of Halliburton Energy Services. For other uses of this term see Industry (disambiguation An industry (from Latin industrius, "diligent industrious" West Texas PumpjackJPG|thumb|right|300px|This Pumpjack located south of Midland TX is a common sight in West Texas. In Marketing, a product is anything that can be offered to a Market that might satisfy a want or need In business revenue or revenues is Income that a company receives from its normal business activities usually from the sale of goods and services 3 billion USD (2007)[1] |
| Net income |
▲$3. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been Net income is equal to the Income that a firm has after subtracting costs and Expenses from the total Revenue. 5 billion USD (2007)[1] |
| Employees |
50,000 (2007) |
| Website |
www.halliburton.com |
Halliburton Energy Services (NYSE: HAL) is a United States-based multinational corporation with operations in more than 120 countries. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been Employment is a Contract between two parties, one being the employer and the other being the employee. A website (alternatively web site or Web site, a back-construction from the Proper noun World Wide Web) is a collection of Web pages The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. The United States of America —commonly referred to as the Multinational corporation ( MNC) or transnational corporation ( TNC) is a Corporation or enterprise that manages Production or delivers It has been at the forefront of several media and political controversies in relation to its work for the U.S. Government, its political ties, and its corporate ethics. The federal government of the United States is the central United States Governmental body established by the United States Constitution.
It is based in Houston, Texas, in the United States. Texas ( is a state geographically located in the South Central United States and is also known as the Lone Star State. The United States of America —commonly referred to as the U. S. office locations are also in Anchorage, Alaska, Bakersfield, California, Denver, Colorado, Lafayette, Louisiana, and Oklahoma City, Oklahoma. The City and County of Denver (pronounced /ˈdɛnvɚ/ is the Capital and the most populous city of Colorado, in the United States Lafayette is a City in and the Parish seat of Lafayette Parish, Louisiana, United States, on the Vermilion River. Oklahoma City is the capital and largest city of the US state of Oklahoma. Halliburton opened a second headquarters in Dubai, in the United Arab Emirates, in March 2007, where Chairman and CEO David J. Lesar will work and reside, "to Focus [the] Company’s Eastern Hemisphere Growth. Dubai (in دبيّ,) is one of the seven emirates and most populous city of the United Arab Emirates (UAE David J Lesar, is Chairman, President, and Chief Executive Officer of Halliburton Energy Services. "[2] Corporate offices will remain in Houston and the company will remain incorporated in the United States. [3][4][5] The company will consider Houston and Dubai as dual headquarters.
Halliburton's major business segment is the Energy Services Group (ESG). ESG provides technical products and services for oil and gas exploration and production. An oil is a substance that is in a viscous Liquid state ( "oily") at ambient temperatures or slightly warmer and is Natural gas is a Gaseous Fossil fuel consisting primarily of Methane but including significant quantities of Ethane, Propane,
Halliburton's former subsidiary, KBR, is a major construction company of refineries, oil fields, pipelines, and chemical plants. KBR Inc (formerly Kellogg Brown & Root) is an American engineering and construction company formerly a subsidiary of Halliburton, based in An oil refinery is an industrial Process plant where Crude oil is processed and refined into more useful Petroleum products, such as Gasoline An oil field is a region with an abundance of Oil wells extracting Petroleum (crude oil from below ground Pipeline transport is the transportation of goods through a pipe. A chemical plant is industrial process plant that manufactures (or otherwise processes Chemicals usually on a large scale Halliburton announced on April 5, 2007 that it had finally broken ties with KBR, which has been its contracting, engineering and construction unit as a part of the company for 44 years. [6]
Business overview
Energy Services, the company's historical cornerstone, includes drilling & formation evaluation, digital & consulting solutions, production volume optimization, and fluid systems. This business continues to be profitable, and the company is one of the world's largest players in this industry; Schlumberger is its closest competitor followed by Weatherford International , Tesco Corporation and Baker Hughes . Schlumberger Limited is the world's largest Oilfield services corporation operating in approximately 80 countries with about 84000 people of 140 nationalities Weatherford International Ltd ( is one of the world's largest diversified upstream Oilfield service companies Tesco Corporation (TESCO () is an Oilfield services company specialising in the design manufacture and service of technology-based solutions for the Baker Hughes is the world's third-largest Oilfield services company behind Schlumberger & Halliburton, its main competitors
With the acquisition of Dresser Industries in 1998, the Kellogg-Brown & Root division (in 2002 renamed to KBR) was formed by merging Halliburton's Brown & Root (acquired 1962) subsidiary and the M. Dresser Industries was a Multinational corporation headquartered in Dallas, Texas, which provided a wide range of technology products and services used W. Kellogg division of Dresser (which Dresser had merged with in 1988). KBR is a major international construction company, which is a highly volatile undertaking subject to wild fluctuations in revenue and profit. Asbestos-related litigation from the Kellogg acquisition caused the company to book more than US$4. Asbestos is a group of Minerals with long thin fibrous Crystals The word "asbestos" (῾ἀσβεστος is derived from a Greek adjective The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 0 billion in losses from 2002 through 2004.
As a result of the asbestos-related costs and staggering losses on the Barracuda Caratinga FPSO construction project based in Rio de Janeiro, Brazil, Halliburton lost approximately $900 million U.S. a year from 2002 through 2004. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been A final non-appealable settlement in the asbestos case was reached in January 2005 which allowed Halliburton subsidiary KBR to exit Chapter 11 bankruptcy and returned the company to quarterly profitability. So, while Halliburton's revenues have increased because of war in the Middle East, its bottom line continues to suffer. [7]
At a meeting for investors and analysts in August 2004, a plan was outlined to divest the KBR division through a possible sale, spin-off or initial public offering. A spin-off (or spinoff) is a new Organization or Entity formed by a split from a larger one such as a Television series based on a pre-existing Initial public offering (IPO, also referred to simply as a "public offering" is when a company issues Common stock or shares to the public for the first Analysts at Deutsche Bank value KBR at up to $2. Deutsche Bank AG (literally "German Bank" ˈdɔɪtʃə,) is an international Universal bank with a broad private clients franchise headquartered in 15 billion, while others believe it could be worth closer to $3 billion by 2005. KBR became a separately listed company on 5 April 2007.
As of November 2007 strong rumours have surfaced over speculation that Halliburton are ready to launch takeover bids for Baker Hughes and Uk based Expro Group. Baker Hughes is the world's third-largest Oilfield services company behind Schlumberger & Halliburton, its main competitors
History
1919 to 1990
Vida and Erle P. Halliburton first tried to find work cementing oil wells in Burkburnett, Texas then moved their business (New Method Oil Well Cementing Company) to the Healdton field near Ardmore, Oklahoma. Burkburnett is a city in Wichita County, Texas, United States. Texas ( is a state geographically located in the South Central United States and is also known as the Lone Star State. Healdton is a city in Carter County, Oklahoma, United States. Ardmore is a business cultural and tourism city in and the County seat of Carter County, Oklahoma, United States. Oklahoma ( is a state located in the South Central region of the United States of America.
1990s
- Following the end of the Gulf War, the Pentagon, led by then Defense Secretary Dick Cheney, paid Halliburton subsidiary Brown & Root Services over $8. Duncan is a city in Stephens County, Oklahoma, United States. Oklahoma ( is a state located in the South Central region of the United States of America. The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. Fort Worth is the fifth-largest city in the state of Texas and the seventeenth-largest city in the United States. Texas ( is a state geographically located in the South Central United States and is also known as the Lone Star State. Texas ( is a state geographically located in the South Central United States and is also known as the Lone Star State. KBR Inc (formerly Kellogg Brown & Root) is an American engineering and construction company formerly a subsidiary of Halliburton, based in Texas ( is a state geographically located in the South Central United States and is also known as the Lone Star State. Geophysical Service Inc (often abbreviated GSI) was founded by John Clarence Karcher and Eugene McDermott in 1930 for the purpose of using refraction and Texas Instruments ( better known in the electronics industry (and popularly as TI, is an American company based in Dallas, Texas, USA Halliburton Logging Services was created in October 1988 when Gearhart Industries was acquired by Halliburton and merged with Welex, which was already owned The Pentagon is the Headquarters of the United States Department of Defense, located in Arlington County, Virginia. 5 million to study the use of private military forces with American soldiers in combat zones. [8]
- Thomas H. Cruikshank, who served as chairman and CEO from 1989 until 1995, was replaced by Dick Cheney. Thomas H Cruikshank is a former Chairman and CEO of Halliburton Energy Services from 1989 to 1995 A chief executive officer ( CEO) or chief executive is typically the highest-ranking corporate officer ( executive) or administrator Richard Bruce "Dick" Cheney (born January 30 1941 is the forty-sixth and current Vice President of the United States.
- In the aftermath of Operation Desert Storm in Kuwait in 1991, Halliburton crews helped bring 320 burning oil wells under control. The State of Kuwait ( دولة الكويت IPA [dawlatt̪ alkuwajt̪]) is a sovereign Arab Emirate on the coast of the Persian Gulf, enclosed
- In the early 1990s Halliburton was found to be in violation of federal trade barriers in Iraq and Libya, having sold these countries dual-use oil drilling equipment and, through its former subsidiary, Halliburton Logging Services, sending six pulse neutron generators to Libya. For a topic outline on this subject see List of basic Iraq topics. Libya ( ليبيا ar-Latn Lībiyā; Libyan vernacular: Lībya; Amazigh:) officially the Great Socialist People's Libyan Arab Dual-use is a term often used in Politics and Diplomacy to refer to Technology which can be used for both Peaceful and Military aims Neutron generators are Neutron source devices which contain compact Linear accelerators and that produce Neutrons by fusing Isotopes of Hydrogen After having pleaded guilty, the company was fined $1. 2 million, with another $2. 61 million in penalties. [9]
- In the Balkans conflict in the 1990s, Kellogg Brown-Root (KBR) supported U. S. peacekeeping forces in Bosnia and Herzegovina, Croatia and Hungary with food, laundry, transportation and other lifecycle management services. Bosnia and Herzegovina ( Latin script: Bosna i Hercegovina, Cyrillic script: Босна и Херцеговина is a country on the Balkan Croatia (Hrvatska ˈxȓvatska officially the Republic of Croatia ( Republika Hrvatska) is a southern Central European country at the crossroads between Hungary (Magyarország 'mɔɟɔrorsaːg) officially in English the Republic of Hungary ( Magyar Köztársaság, literally Magyar (Hungarian Republic
- In 1998 Halliburton merged with Dresser Industries, which included Kellogg. Dresser Industries was a Multinational corporation headquartered in Dallas, Texas, which provided a wide range of technology products and services used Prescott Bush was a director of Dresser Industries, which is now part of Halliburton. Prescott Sheldon Bush ( May 15, 1895 – October 8, 1972) was a United States Senator from Connecticut, a Dresser Industries was a Multinational corporation headquartered in Dallas, Texas, which provided a wide range of technology products and services used Former United States president George H. W. Bush worked for Dresser Industries in several positions from 1948–1951, before he founded Zapata Corporation. George Herbert Walker Bush (born June 12 1924 served as the forty-first President of the United States from 1989 to 1993 Zapata Corporation ( is a Holding company based in Rochester New York and originating from an oil company started by a group including the former
2000s
- In December 2000, KBR agreed to build two FPSOs for Petrobras (Barracuda and Caratinga). A Floating Production Storage and Offloading vessel ( FPSO; also called a "unit" and a "system" is a type of floating tank system used by the offshore Petrobras ( Bovespa: PETR3 / PETR4 ( NYSE: PBR / PBRA( Latibex: XPBR / XPBRA short for Petróleo Brasileiro S By the time the project was complete, KBR had lost approximately $1billion on the contract.
- On 10 April 2001 the Dresser division (excluding the former Kellogg division) entered an agreement to separate itself once again from Halliburton by management purchasing its equity, the new company to be called Dresser Inc.
- In 2001 The Wall Street Journal reported that a subsidiary of Halliburton Energy Services called Halliburton Products and Services Ltd. Events 879 - Louis III becomes King of the Western Franks. 1407 - the lama Year 2001 ( MMI) was a Common year starting on Monday according to the Gregorian calendar. Dresser Inc based in Addison, Texas (a northern suburb of Dallas) is a privately held manufacturer and marketer of highly engineered equipment and specialized (HPS) opened an office in Tehran. The company, HPS, operated on the ninth floor of a new north Tehran tower block. Tehran (or Teheran) ( Persian: تهران Tehrān) is the capital and largest City of Iran, and the administrative center of Although HPS was incorporated in the Cayman Islands in 1975 and is "non-American", it shares both the logo and name of Halliburton Energy Services and, according to Dow Jones Newswires offers services from Halliburton units world-wide through its Tehran office. The Cayman Islands are a British overseas territory located in the western Caribbean Sea, comprising the islands of Grand Cayman, Cayman Brac Dow Jones Newswires is the real-time financial news organization owned by Dow Jones (a part of News Corporation. Such behavior, undertaken while Cheney was CEO of Halliburton, may have violated the Trading with the Enemy Act. The Trading with the Enemy Act, sometimes abbreviated as TWEA, is a United States federal law,, enacted in 1917 to restrict trade with countries hostile to the A Halliburton spokesman, responding to inquiries from Dow Jones, said "This is not breaking any laws. This is a foreign subsidiary and no US person is involved in this. No US person is facilitating any transaction. We are not performing directly in that country. " No legal action has been taken against the company or its officials. [10]
- In 2002, Judicial Watch, a public action law firm, filed suit on behalf of shareholders against Halliburton, its current and former directors, and its accounting firm, Arthur Andersen LLP and Arthur Andersen Worldwide, for alleged accounting irregularities, said to be profit inflation by accounting for cost overruns as revenue. Judicial Watch is an organization which describes itself as "a conservative non-partisan American educational foundation that promotes transparency accountability and integrity in Arthur Andersen LLP, based in Chicago, was once one of the "Big Five" accounting firms among PricewaterhouseCoopers, Deloitte Touche The U.S. Securities and Exchange Commission (SEC) investigated the same issue. The US Securities and Exchange Commission (commonly known as the SEC) is an independent agency of the United States government which holds primary responsibility Halliburton counters that the practice was approved by its accounting firm, Arthur Andersen, and conforms to generally accepted accounting practices. In August, 2004, Halliburton paid a $7. 5 million fine to settle the issue.
- In April 2002, KBR was awarded a $7 million contract to construct steel holding cells at Camp X-Ray. Camp X-Ray was a temporary detention facility at the Guantanamo Bay detention camp of Joint Task Force Guantanamo on the U [11]
- From 1995–2002, Halliburton Brown & Root Services Corp was awarded at least $2. 5 billion but has spent considerably less to construct and run military bases, some in secret locations, as part of the Army's Logistics Civil Augmentation Program. This contract was a cost plus 13% contract and BRS employees were trained on how to pass GAO audits to ensure maximum profits were attained. It was also grounds for termination in the Balkans if any BRS employee spoke of Dick Cheney being CEO. BRS was awarded and re-awarded contracts termed "non-competitive due to BRS being the only company capable to pull off the missions. DYNACORP actually won the competitively let 2nd contract but never received any work orders in the Balkans. [8]
- In November 2002, KBR was tasked to plan oil well firefighting in Iraq, and in February 2003 was issued a contract to conduct the work. Critics contend that it was a no-bid contract, awarded due to Dick Cheney's position as Vice President. No-bid contract is a popular term for what is officially known as a "sole source contract Concern was also expressed that the contract could allow KBR to pump and distribute Iraqi oil. [12] Others contend, however, that this was not strictly a no-bid contract, and was invoked under a contract that KBR won "in a competitive bid process. "[13] The contract, referred to as LOGCAP, is a contingency-based contract that is invoked at the convenience of the Army. Because the contract is essentially a retainer, specific orders are not competitively bid (as the overall contract was). It has also been argued that when the contract was invoked in a similar manner during the Balkans crisis (when Bill Clinton was president), there was no controversy and very little scrutiny of the contract; proponents of this viewpoint argue that the KBR's LOGCAP contract was made a political issue by opponents of Bush and Cheney. [13]
- In May 2003, Halliburton revealed in SEC filings that its KBR subsidiary had paid a Nigerian official $2. An SEC filing is a Financial statement or other formal document submitted to the U Nigeria, officially named the Federal Republic of Nigeria, is a federal Constitutional republic comprising thirty-six states and one Federal 4 million in bribes in order to receive favorable tax treatment. Bribery, a form of pecuniary corruption is an act usually implying money or gift given that alters the behaviour of the recipient in ways not consistent with the duties of that person [14][15]
- As of 2003, Halliburton was still operating in Iran. For a topic outline on this subject see List of basic Iran topics. CNN, in a report entitled "US companies are operating in Iran despite sanctions," reported that a Halliburton spokesperson told the news agency that HPS helps Iran build large oil rigs in the country's south. Cable News Network, usually referred to by its Initialism CNN, is a major English language Television network founded in 1980 by Ted Turner
- In February 2004, the Government Accountability Office (GAO) released a report on government contractorsPDF (774 KiB) that use offshore tax havens. The Government Accountability Office ( GAO) is the Audit, Evaluation, and investigative arm of the United States Congress. A kibibyte (a contraction of ki lo bi nary byte) is a unit of Information or Computer storage, established by the International An offshore financial centre (or OFC) although not precisely defined is usually a low- Tax, lightly Regulated jurisdiction which specializes in providing A tax haven is a place where certain Taxes are levied at a low rate or not at all It ranks the contractors in terms of the size of the contractors and provides information about how many subsidiaries the companies have offshore. Using data of the end of 2001, Halliburton ranked 30, had 17 offshore companies in tax havens, and 131 foreign subsidiaries. An offshore financial centre (or OFC) although not precisely defined is usually a low- Tax, lightly Regulated jurisdiction which specializes in providing A subsidiary, in business matters is an entity that is controlled by a bigger and more powerful entity
- In October of 2004, Halliburton opened a new 250,000-square-foot (23,000 m²) facility on 35 acres, replacing an older facility that opened in 1948, in Rock Springs, Wyoming. Rock Springs is a city in Sweetwater County, Wyoming, United States. With over approximately 500 employees, Halliburton is one of the largest private employers in Sweetwater County. Sweetwater County is a County located in the US state of Wyoming. [16]
- In September 2005, under a competitive bid contract it won in July of 2005, to provide debris removal and other emergency work associated with natural disasters, KBR started assessment of the cleanup and reconstruction of Gulf Coast U.S. Marine and U.S. Navy facilities that were damaged in the aftermath of Hurricane Katrina. The Gulf Coast region of the United States comprises the coasts of states which border the Gulf of Mexico. Hurricane Katrina of the 2005 Atlantic hurricane season was the costliest hurricane, as well as one of the five deadliest in the history of the United States The facilities include: Naval Air Station Pascagoula, Naval Station Gulfport, Stennis Space Center in Mississippi, two smaller U. Mississippi ( is a state located in the Deep South of the United States S. Navy facilities in New Orleans and others in the Gulf Coast region. New Orleans (nʲuːˈɔrliənz nʲuːˈɔrlənz French: La Nouvelle-Orléans) is a major United States port city and the largest city in Louisiana KBR has had similar contracts for more than 15 years.
- On January 24, 2006 Halliburton’s subsidiary KBR (formerly Kellogg, Brown and Root) announced that it had been awarded a $385 million contingency contract by the Department of Homeland Security to build "temporary detention and processing facilities" or internment camps. Internment is the imprisonment or confinement of people commonly in large groups without trial According to Business Wire, this contract will be executed in cooperation with the U. Business Wire is a company that disseminates full-text News releases from thousands of companies and organizations worldwide to News media, financial markets S. Army Corps of Engineers, Fort Worth District. Critics point to the Guantanamo Bay detention camp as a possible model. The Guantanamo Bay Detention Camp is a controversial United States Detention center operated by Joint Task Force Guantanamo since 2002 in Guantanamo On the other hand, according to a press release posted on the Halliburton website, "The contract, which is effective immediately, provides for establishing temporary detention and processing capabilities to augment existing Immigration and Customs Enforcement (ICE) Detention and Removal Operations (DRO) Program facilities in the event of an emergency influx of immigrants into the U. S. , or to support the rapid development of new programs. The contingency support contract provides for planning and, if required, initiation of specific engineering, construction and logistics support tasks to establish, operate and maintain one or more expansion facilities. "[17]
- On April 15, 2006, Halliburton filed a registration statement with the Securities and Exchange Commission to sell up to 20 percent of its KBR stock on the NYSE under the ticker symbol "KBR", as part of an eventual plan for KBR to be a separate company from Halliburton. The US Securities and Exchange Commission (commonly known as the SEC) is an independent agency of the United States government which holds primary responsibility The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. [18]
- In February, 2008, a hard disk and two computers containing classified information were stolen from Petrobras while in Halliburton's custody. Allegedly, the content inside the stolen material, was data on the recently discovered Tupi oil field. The Tupi oil field is a large oil field off the coast of Brazil located in the Santos Basin. [19]
Iraq controversy
Halliburton is the only company mentioned by Osama bin Laden in an April 2004 tape in which he claims that "this is a war [in Iraq] that is benefiting major companies with billions of dollars. Osama bin Laden, with some spelling variations is the name used in English to refer to (أسامة بن محمد بن عوض بن لادن born 10 March "[20]
Internet pundit John Burnett has described Halliburton's deals as recalling a Vietnam-Era controversy. John Burnett may refer to John Burnett (judge (1831–1890 American judge on the Oregon Supreme Court John George Burnett (1876–1962 He claims Vice President Cheney's ties to the company are reminiscent of President Lyndon B. Johnson's relationships with Brown & Root. KBR Inc (formerly Kellogg Brown & Root) is an American engineering and construction company formerly a subsidiary of Halliburton, based in [1]
Oil Failures
Halliburton’s $2. 5 billion no-bid "Restore Iraqi Oil" (RIO) contract[21] was supposed to pay for itself as well as reconstruction of the entire country. Had the contract been fulfilled correctly, Iraq would be able to export much more oil from its northern oil fields. For a topic outline on this subject see List of basic Iraq topics. Instead, the oil fields are barely usable and access to international markets is severely limited. Halliburton’s work on the pipeline crossing the Tigris river at Al Fatah was a critical failure. The Tigris is the eastern member of the two great Rivers that define Mesopotamia, along with the Euphrates, which flows from the mountains of southeastern Against the advice of its own experts, Halliburton tried to dig a tunnel through a geological fault zone. The underground terrain was a jumble of boulders, voids, cobblestones and gravel impossible for the kind of drilling Halliburton planned. "No driller in his right mind would have gone ahead", said Army geologist Robert Sanders when the military finally sent people to inspect the work. [22]
Halliburton spent all of the $75. 7 million allocated to the river crossing, including $100,000 a day while crews sat idle while drill bits were broken and equipment jammed. The US Inspector General estimated the money lost from oil exports at $5 million a day. After Halliburton had spent all the money allocated, the U. S. issued a new $66 million job order dedicated to the same task.
Whistle blowing after Iraq war
Bunnatine Greenhouse, a civil servant with 20 years of contracting experience, had complained to Army officials on numerous occasions that Halliburton had been unlawfully receiving special treatment for work in Iraq, Kuwait and the Balkans. Bunnatine (Bunny H Greenhouse is a former chief contracting officer (Principal Assistant Responsible for Contracting (PARC of the United States Army Corps of Engineers. The State of Kuwait ( دولة الكويت IPA [dawlatt̪ alkuwajt̪]) is a sovereign Arab Emirate on the coast of the Persian Gulf, enclosed The seriousness of her allegations prompted the U. S. Justice Department, the Federal Bureau of Investigation (FBI) and the Pentagon's inspector general to open criminal investigations that continue today.
Greenhouse stated in a congressional hearing in June, 2005. "I can unequivocally state that the abuse related to contracts awarded to KBR represents the most blatant and improper contract abuse I have witnessed during the course of my professional career. "
In one of the many examples of abuse, Greenhouse said that military auditors caught Halliburton overcharging the Pentagon for fuel deliveries into Iraq. For a topic outline on this subject see List of basic Iraq topics. She also complained that Defense Secretary Donald Rumsfeld's office took control of every aspect of Halliburton's $7 billion no-bid Iraqi oil/infrastructure contract. Donald Henry Rumsfeld (born July 9 1932 is a United States Businessman, Politician, the 13th Secretary of Defense under President As a result of her whistle blowing, she was soon demoted on grounds of poor performance though USACE. [23] Greenhouse had received excellent performance ratings in the past. Greenhouse's attorney, Michael Kohn, stated in the New York Times that "She is being demoted because of her strict adherence to procurement requirements and the Army's preference to sidestep them when it suits their needs. "
Response by Halliburton
1. Selling of KBR Subsidiary
In November 2006, Halliburton started off-loading its stake in the KBR subsidiary. By February 2007, Halliburton had completely sold off the subsidiary. This came after it was indicted of “overcharging” by Pentagon audit reports.
In June 2007, just days after Stewart Bowen, the Special Inspector General released a new report, which explains how KBR has been gouging taxpayers from inside the Green Zone, the Army announced that KBR will divvy up another $150 billion with two other contractors, Fluor and Dyncorp, [24] over the next ten years.
2. Opening of Corporate Headquarters in Dubai
Financials
The company's contracts in Iraq are expected to have generated more than $13 billion in revenue by the time they start to expire in 2006, but most offer low margins — less than 2% on average in 2003 and just 1. Dubai (in دبيّ,) is one of the seven emirates and most populous city of the United Arab Emirates (UAE Gross margin, Gross profit margin or Gross Profit Rate can be defined as the amount of contribution to the business enterprise after paying for direct-fixed and direct-variable 4% this year for the logistics work making these contracts less profitable than Halliburton's core energy business. Logistics is the management of the flow of Goods, Information and other resources including Energy and people between the point of origin and the point The contracts in Iraq will be more profitable after the US Army reimburses them for costs that were originally investigated as potentially inflated. Meanwhile, KBR reconstruction contracts in Iraq 'tracked' by the US Department of Defense were shown to include as much as 55% of total project costs as overhead. [25]
KBR has contracts in Iraq worth up to $18 billion, including a single no-bid contract known as "Restore Iraqi Oil" (RIO) which has an estimated worth of $7 billion. No-bid contract is a popular term for what is officially known as a "sole source contract No-bid contract is a popular term for what is officially known as a "sole source contract
An audit of KBR by the Pentagon’s Defense Contract Audit Agency (DCAA) found $108 million in "questioned costs" and, as of mid-March 2005, said they still had "major" unresolved issues with Halliburton. The Defense Contract Audit Agency (DCAA under the authority direction and control of the United States Under Secretary of Defense (Comptroller is responsible for performing
Ties with VP Richard Cheney
In recent years the company has become the center of several controversies involving the 2003 Iraq War and the company's ties to U. The 2003 invasion of Iraq, from March 20 to May 1 2003 was spearheaded by the United States, backed by British forces and smaller contingents from Australia S. Vice President Dick Cheney. Richard Bruce "Dick" Cheney (born January 30 1941 is the forty-sixth and current Vice President of the United States. Cheney retired from the company during the 2000 U.S. presidential election campaign with a severance package worth $34 million. The United States presidential election of 2000 was a contest between Democratic candidate Al Gore, then Vice President, and Republican [26] As of 2004, he had received $398,548 in deferred compensation from Halliburton while Vice President. Deferred compensation is an arrangement in which a portion of an employee's Income is paid out at a date after which that income is actually earned [27] Concerns have been raised regarding the possible conflict of interest resulting from Cheney's deferred compensation and stock options from Halliburton. A conflict of interest is a situation in which someone in a position of trust such as a Lawyer, Insurance adjuster, a Politician, executive or director However, before entering office in 2001, Cheney bought an insurance policy that guaranteed a fixed amount of deferred payments from Halliburton each year for five years so that the payments would not depend on the company's fortunes. An Insurance contract determines the legal framework under which the features of an Insurance policy are enforced [27] He is legally bound by an agreement he signed which turns over power of attorney to a trust administrator to sell the options at some future time and to give the after-tax profits to three charities. A power of attorney (POA or letter of attorney in Common law systems or Mandate in civil law systems is an authorization to The agreement specifies that 40% will go to the University of Wyoming (in Cheney's home state), 40% will go to George Washington University's medical faculty to be used for tax-exempt charitable purposes, and 20% will go to Capital Partners for Education. The University of Wyoming is a Land-grant university located in Laramie, Wyoming, situated on Wyoming's high Laramie Plains, at an elevation The George Washington University ( GW or GWU) is a private coeducational university located in Washington D The agreement states that it is "irrevocable and may not be terminated, waived or amended," preventing Cheney from taking back the options at a later date. [27]
Employee safety
In accordance with Law of Armed Conflict and to maintain Non-combatant status, Halliburton does not arm its truck drivers, who in Iraq are often the target of insurgent attacks. The law of war (also law of armed conflict, LOAC) is Law concerning acceptable practices relating to war Non-combatant is a military and legal term describing Civilians not engaged in combat An insurgency is a violent internal uprising against a sovereign government that lacks the organization of a revolution In one case, on September 20, 2005, a Halliburton convoy of four trucks was ambushed north of Baghdad. Events 451 - The Battle of Chalons takes place in North Eastern France. Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. All four trucks were struck by IEDs and were disabled. An improvised explosive device ( IED) is a Bomb constructed and deployed in ways other than in conventional Military action Their US National Guard escort was thought to have abandoned the disabled vehicles, leaving the unarmed truck drivers defenseless. Three of the four truck drivers were executed by the insurgents while the surviving driver, Preston Wheeler, caught the event on video. Although the trucks had military camouflage paint, there were only civilians driving them. It was 45 minutes before the US military arrived again at the scene. [28] However, in a statement by senior military officials in Iraq, an investigation revealed that troops did not abandon the civilians and were exiting the "kill zone" during the ambush. [29]
Gang rape
Former Halliburton subsidiary KBR is currently alleged to have covered up a gang rape of Jamie Leigh Jones, one of its contractors, by several other KBR employees in Iraq in 2005. See also Rape Rape can be categorized in different ways for example by reference to the situation in which it occurs by the identity or characteristics Jamie Leigh Jones (born 1985 is a former KBR employee who claims that seven KBR employees drugged and gang-raped her on July 28, 2005 at For a topic outline on this subject see List of basic Iraq topics. Jones was allegedly not only drugged and raped by her coworkers, but then confined to a security container without food, water, or medical treatment for a full day before a guard allowed her to call her father. Jones' father then contacted his local Congressional Representative Ted Poe, who approached the State Department regarding the matter. Lloyd "Ted" Poe (born September 10, 1948) is a Republican Politician currently representing Texas's 2nd congressional district Because of contractual restrictions, Jones is barred from suing her employer. Halliburton is claiming that they are "improperly named" in the claim, as they have since divested from KBR. [30]
Halliburton in the media
- Iraq for Sale: The War Profiteers is a 2006 documentary by Robert Greenwald. Iraq for Sale The War Profiteers is a 2006 documentary about the ongoing Iraq War and the behavior of companies with No-bid contracts Robert Greenwald (born August 28, 1945) is an American Film director, Film producer, and Political activist, noted in the
- The War Tapes is a 2006 documentary filmed by actual soldiers during their deployment in Iraq. The War Tapes is the first documentary film of the 2003 invasion of Iraq to be produced by the soldiers themselves For a topic outline on this subject see List of basic Iraq topics. Notably, Halliburton is mentioned to be charging the USA $28 each for the disposable picnic plates given to the soldiers in the mess hall that their meals are served on.
- In Marvel Comics' Fantastic Four Halliburton has received many of the no-bid contracts for the repair of the Baxter Building. Marvel Comics is an American comic book company owned by Marvel Publishing Inc The Fantastic Four is a fictional Superhero team appearing in Comic books published by Marvel Comics. No-bid contract is a popular term for what is officially known as a "sole source contract The Baxter Building is a fictitious 35-story office building in Manhattan whose five upper floors house the Fantastic Four 's headquarters in the Marvel Reed Richards said that they overcharged for the work. Mr Fantastic ( Reed Richards) is a Fictional character, a Marvel Comics Superhero and a member of the Fantastic Four. [31]
- Halliburton was mentioned in the Jib Jab shortie "Good to be in D. JibJab is a digital entertainment studio based in Los Angeles California. C. " with the opening lyrics: "Oh, I wish my winnings were a bit more certain (George W. Bush), I better call my friends at Halliburton (Dick Cheney)", sung by impersonators.
- In the Faithless song Mass Destruction the lyrics "Whether Halliburton, Enron or anyone, greed is a weapon of mass destruction". Faithless is a British Electronica band While they are mostly famous for their dance songs (" Insomnia " " God Is A DJ " and
- Ras Kass mentions Halliburton in the song "Verses" from Wu-Tang meets Indie Culture "Hally-burton workers make 14,000 dollars a month, privates earn 32 g's a year", and "Bush gave 6. John Austin IV (born September 26, 1973 in Carson California) better known by his stage name Ras Kass, is an American 64 to Hally-burton"
- The Megadeth song Amerikhastan mentions " These are your people Lady Liberty, pull up your dress today, and tattooed is property of the USA, a subsidiary of Halliburton". Megadeth is an American heavy metal band led by founder front man guitarist and songwriter Dave Mustaine.
- On the Sarah Silverman Program, in the episode Muffin' Man, at an open mic night, the dessert chef at the cafe chants "Halliburton, Dick Cheney, I think we've all lost our BRAINY! Wake up America!
Environmental record
In 2002 Halliburton was noted for depleting 70% to 80% of its chemicals into our air's environment.
Also in 2002 a Toxics Release Inventory (TRI) reports were done to see if the chemicals being emitted were harmful to people from Halliburton's Harris County, Texas facility. Harris County is a County located in the US state of Texas within the Houston–Sugar Land–Baytown metropolitan area The facility had 230 TRI air releases in 2001 and 245 in 2002. [32]
On June 7, 2006 Halliburton's Farmington, New Mexico facility created a toxic cloud that forced people to evacuate from their homes so they would not be harmed. Farmington ( Tótah) is a city in San Juan County, New Mexico, United States. [33]
See also
References
- ^ a b "Halliburton Announced Full Year and Fourth Quarter Results" - Halliburton. The list of oilfield service companies includes companies that provide services to the Petroleum exploration and production industry but that do not typically produce petroleum A private military company ( PMC) provides specialized expertise or services of a military nature sometimes called or classified as Mercenary ("soldiers for hire" com - 2008-01-28 - (Adobe Acrobat *. Adobe Acrobat is a family of computer programs developed by Adobe Systems, designed to view create manipulate and manage files in Adobe's Portable Document PDF document)
- ^ "Halliburton Opens Corporate Headquarters in the United Arab Emirates" - 2007 Press Releases - at Halliburton. com - March 11, 2007
- ^ "Halliburton to Move Headquarters to Dubai" - All Things Considered - NPR - March 12, 2007
- ^ Steffy, Loren. All Things Considered (ATC is a news radio program in the United States broadcast on the National Public Radio network "Halliburton heralds Houston's hereafter" - Houston Chronicle - March 14, 2007
- ^ Steffy, Loren. The Houston Chronicle is the largest daily Newspaper in Texas, USA. "Sound Off: Halliburton's Dubai kiss" - Houston Chronicle - March 14, 2007
- ^ "Halliburton Completes Separation of KBR" - 2007 Press Releases - Halliburton. The Houston Chronicle is the largest daily Newspaper in Texas, USA. com - April 5, 2007
- ^ Halliburton Watch
- ^ a b Yeoman, Barry. "Soldiers of Good Fortune", Mother Jones, 2003-06-01. Year 2003 ( MMIII) was a Common year starting on Wednesday of the Gregorian calendar. Events 193 - Roman Emperor Didius Julianus is Assassinated 987 - Hugh Capet is elected Retrieved on 2007-05-08. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Events 589 - Reccared summons the Third Council of Toledo 1450 - Jack Cade's Rebellion: Kentishmen
- ^ HALLIBURTON ANNOUNCES AGREEMENTS TO SETTLE EXPORT INVESTIGATION. | Government > Government Bodies & Offices from AllBusiness.com
- ^ Halliburton Connected to Office in Iran, Dow Jones, 2/1/01
- ^ Waiting for Gitmo
- ^ "Halliburton's Iraq role expands", BBC News, 2003-05-07. Year 2003 ( MMIII) was a Common year starting on Wednesday of the Gregorian calendar. Events 558 - In Constantinople, the dome of the Hagia Sophia collapses Retrieved on 2006-04-28. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. Events 1192 - Assassination of Conrad of Montferrat (Conrad I King of Jerusalem, in Tyre, two days after his title
- ^ a b York, Byron (July 14, 2003). Events 1223 - Louis VIII becomes King of France upon the death of his father Philip II of France. Year 2003 ( MMIII) was a Common year starting on Wednesday of the Gregorian calendar. "Halliburton: The Bush/Iraq Scandal that Wasn't". National Review.
- ^ Halliburton firm bribed Nigeria - theage.com.au
- ^ http://www.chron.com/cs/CDA/ssistory.mpl/business/1902750
- ^ who owns 100% of Service Employers International Inc. which KBR is a head hunter for. "Halliburton Opens New Facility in Southwest Wyoming" - 2004 Press Releases at Halliburton. com - October 28, 2004
- ^ Halliburton News
- ^ http://library.corporate-ir.net/library/67/676/67605/items/199968/KBR_S1.pdf
- ^ Polícia Federal investiga furto de dados sigilosos da Petrobras - 14/02/2008 - UOL Últimas Notícias
- ^ BBC NEWS | World | Middle East | Full text: 'Bin Laden tape'
- ^ Waxman, Henry A. (2004-12-09). Henry Arnold Waxman (born September 12, 1939 in Los Angeles California) is an American politician. "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " Events 536 - Byzantine General Belisarius enters Rome while the Ostrogothic garrison peacefully leaves the city "Fact Sheet: Halliburton's Iraq Contracts Now Worth over $10 Billion" (PDF). Retrieved on 2007-01-22. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Events 565 - Eutychius is deposed as Patriarch of Constantinople by John Scholasticus.
- ^ James Glanz (2006-04-25). Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. Events 1607 - Eighty Years' War: The Dutch fleet destroys the anchored Spanish fleet at Gibraltar. Rebuilding of Iraqi pipeline as disaster waiting to happen. Retrieved on 2007-12-01. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Events 800 - Charlemagne judges the accusations against Pope Leo III in the Vatican
- ^ U.S. Army Corps of Engineers Home Page
- ^ KBR, Fluor, Dyncorp win US Army contract, shrs up | Reuters
- ^ Idle Contractors Add Millions to Iraq Rebuilding - New York Times
- ^ Halliburton suspends bill for army meals | World news | The Guardian
- ^ a b c Kerry Ad Falsely Accuses Cheney on Halliburton. FactCheck. org (September 30, 2004). Events 1399 - Henry IV is proclaimed King of England. 1744 - France and Spain defeat the "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " Retrieved on 2006-04-11. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. Events 491 - Flavius Anastasius becomes Byzantine Emperor, with the name of Anastasius I.
- ^ The Blotter: Exclusive: U.S. Troops Abandoned Me, Says Convoy Driver
- ^ Multi-National Force - Iraq - Leaders: reports 'false, inaccurate'
- ^ Ross, Brian. Brian Elliot Ross (born October 23, 1948) is an American investigative correspondent for ABC News. "Victim: Gang-Rape Cover-Up by U.S., Halliburton/KBR", ABC News, 2007-12-10. This article is about the American news organization See also ABC News (disambiguation ABC News is a division of American Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Events 1041 - Empress Zoe of Byzantium elevates her adoptive son to the throne of the Eastern Roman Empire as Michael V Retrieved on 2007-12-11. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Events 359 - Honoratus, the first known Prefect of the City of Constantinople, takes office
- ^ McDuffie, Dwayne; Mike McKone (January 2007). Dwayne McDuffie is an American writer of Comic books and Television. Michael "Mike" McKone is a comic book artist. His first published works for the major companies included DC Comics ' Justice League of "". Fantastic Four (541). The Fantastic Four is a fictional Superhero team appearing in Comic books published by Marvel Comics.
- ^ Environmental Release Report - Scorecard
- ^ "Halliburton spill results in acid cloud." - Associated Press. The Associated Press ( AP) is an American News agency. The AP is a Cooperative owned by its contributing Newspapers radio - (c/o Albuquerque Journal. The Albuquerque Journal is the largest Newspaper in the state of New Mexico. ) - June 7, 2006.
External links
Editorials from Halliburton Executives
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