Halliburton

For other uses, see Haliburton.
For information on the early 20th century explorer of the same name, see Richard Halliburton

Halliburton Energy Services NYSE: HAL is a multinational corporation based in Houston, Texas. With revenues exceeding $20.46 (billion U.S. FY 2004) and over 95,000 employees, Halliburton operates in two major business segments. The Energy Services Group provides technical products and services for oil and gas exploration and production. The KBR group is a major construction company of mainly refineries, oilfields & pipelines, and chemical plants.

Business Overview

Energy Services, the company's historical bedrock, includes: drilling & formation evaluation, digital & consulting solutions, production volume optimization, and fluid Systems. This business continues to be profitable, and the company is a world leader in this industry; Schlumberger is the company's closest competitor.

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.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 over $4.0 (billion U.S.) in losses from 2002 through 2004.

As a result of the asbestos-related costs, Halliburton lost approximately $900 million U.S. a year from 2002 through 2004.

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. Analysts at Deutsche Bank value KBR at up to $2.15 billion, while others believe it could be worth closer to $3 billion by the time management decides what to do with the business in 2005.

History

1919 to 1990

Mr. and Mrs. 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.

  • 1920: reorganized - Halliburton Oil Well Cementing Company
  • 1921: headquarters - Duncan, Oklahoma
  • 1924: incorporation
  • 1948: New York Stock Exchange listing
  • 1957: acquisition of Welex Jet Services of Fort Worth, Texas
  • 1960: name shortened to Halliburton Company
  • 1961: headquarters - Dallas, Texas
  • 1962: acquisition of Brown and Root of Houston, Texas
  • 1988: acquisition of Geophysical Service Incorporated from Texas Instruments
  • 198?: acquisition of Geosource
  • 198?: Halliburton Logging Services
  • 1982: workforce - 115,000
  • 1982: energy industry decline
  • 1991: workforce - 73,000

1990s

  • In the aftermath of Operation Desert Storm in Kuwait in 1991, Halliburton crews helped bring 320 burning oil wells under control.
  • 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. After having pleaded guilty, the company was fined $1.2 million, with another $2.61 million in penalties.
  • In the Balkans conflict in the 1990s, KBR supported U.S. peacekeeping forces in Bosnia, Croatia and Hungary with food, laundry, transportation and other lifecycle management services.
  • In 1995 Dick Cheney became chairman and CEO
  • In 1998 Halliburton merged with Dresser Industries, which included Kellogg.


2000s

  • 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 it was reported by The Wall Street Journal that a subsidiary of Halliburton Energy Services called Halliburton Products and Services Ltd. opened an office in Tehran. The company, HPS, operated "behind an unmarked door on the ninth floor of a new north Tehran tower block." 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. Such behaviour, undertaken while Cheney was CEO of Halliburton, may have violated the Trading with the Enemy Act. 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.
  • In 2002, Judicial Watch, a public action lawfirm, 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. The Securities and Exchange Commission investigated the same issue. 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. More recently, the subsidiary was awarded a no-bid contract to conduct oil well firefighting in Iraq worth an estimated $1 billion. In May 2003, Halliburton's role under contract with regard to Iraqi oilfields was expanded to include "operation of facilities and distribution of products". [1]
  • In May 2003, Halliburton revealed in a filing with the Securities and Exchange Commission that its KBR subsidiary had paid a Nigerian official $2.4 million in bribes in order to receive favorable tax treatment. [2] [3]
  • As of 2003, Halliburton was still operating in Iran. 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 oil rigs in the country's south.

Iraq Controversy

Wikinews has news related to this article: Civilians testify to Halliburton fraud, coercion

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.

Today KBR employ over 30,000 men and women in Iraq. Halliburton's work in Iraq is diverse and complicated. In addition to troop support, Halliburton also provides air traffic control support; produces 74 million gallons of water a month for consumption, hygiene and laundry; deploys as many as 700 trucks a day to deliver essentials to American forces; and provides firefighter and crash-rescue services, as well as working to restore Iraqi oil infrastructure.

Despite cronyism allegations, the company's contracts in Iraq are much less profitable than its core energy business. They are expected to have generated more than $13 billion in sales by the time they start to expire in 2006 but most offer low margins - less than 2% on average in 2003 and just 1.4% this year for the logistics work.

Halliburton is the only company mentioned by terrorist Osama bin Laden in an April 2004 tape where he claims that "this is a war [in Iraq] that is benefiting major companies with billions of dollars."

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.

Dick Cheney ties

In recent years the company has become the center of many controversies involving the 2003 Iraq War and the company's ties to US Vice President Dick Cheney.

Bill Gertz, defense reporter for The Washington Times, wrote: "Vice President Dick Cheney was chief executive officer of Halliburton from 1995 until 2000, and Democrats repeatedly have tried to link the administration to claims of government favoritism toward the firm." [4].

Cheney retired from the company during the 2000 U.S. presidential election campaign with a severance package worth $20 million.

Cheney's deferred compensation from Halliburton, which appeared on Cheney's 2001 financial disclosure statement, generated an income between $50,000 to $100,000 for the vice president. Dick Cheney also retains 433,000 share-equivalent unexercised stock options at Halliburton.

On the question of Cheney's deferred compensation from Halliburton, officials of the Bush-Cheney campaign said that 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. The officials also said he had promised to donate to charity any after-tax profits he made from exercising his stock options. These steps are not unusual for corporate executives who enter government.

Allegations of fraud

Allegations of fraud by Halliburton, specifically with regard to its operations in Iraq, have persisted since before the Iraq War. The associations between U.S. Vice President Dick Cheney and Halliburton, had led many to speculate with regard to improprieties and profiteering from the war.

On June 27, 2005, the Democratic Party held a public committee, aired on C-SPAN 3, at which former civilian employees based in or administering operations in Iraq, testified to specific instances of waste, fraud, and other abuses and irregularities by Halliburton and its subsidiary Kellogg, Brown and Root (KBR).

Among the senators and representatives present at the hearing were Byron Dorgan (presiding), Henry Waxman, Frank Lautenberg, and Mark Dayton.

Among those testifying were Bunny Greenhouse, former Chief Contracting Officer of the U.S. Army Corps of Engineers, Rory Mayberry, former Food Program Manager for Halliburton subsidiary, and Allan Waller, of the Lloyd-Owen International security and operations firm.

Greenhouse, who provided the bulk of testimony, spoke for several minutes about her involvement in the evaluation and crafting of government Army contracts, and explaining how her superiors undermined and dismissed her concerns of illegal business practices. "Ultimately my main was concern was the repeated insistence RIO contract be awarded to KBR without competitive bidding," Greenhouse said. She testified to have been given misinformation in answer to her complaints, saying she was "overtly misled."

Mayberry, still in Iraq, testified by video from questions prepared by the committee. He said that KBR routinely sold expired food rations to the Army.

The recorded interviewer asked, "Are you saying that Halliburton deliberately falsified the number of meals they prepared and then submitted false claims for reimbursement and that they did this to make up for past amounts auditors had disallowed?" Mayberry firmly answered "yes." He said that serving expired food rations was "an everyday occurrence, sometimes every meal." He also explained that Halliburton systematically overcharged for the number of meals as well, saying, "they were charging for 20,000 meals and they were only serving 10,000 meals." Dorgan later commented, "obviously there's no honor here, by a company that would serve outdated food to our troops in Iraq."

Mayberry also claimed would-be whistleblowers were threatened "to be sent to Falluja" and other "places under fire" if they talked to media or governmental oversight officials. In 2003 and 2004, Falluja had been well known as dangerous for foreign troops and civilians. "I personally was sent to Falluja for three weeks. The manager told me that I was being sent away until the auditors were gone, because I had talked to the auditors," Mayberry said.

"The threat of being sent to a camp under fire was their way of keeping us quiet. The employees who talked to auditors were sent to camps under more fire than other camps, and Anaconda." This report led Dorgan and others to voice considerable outrage.

Allan Waller testified to specific examples of how KBR officials had conspired in blocking of Lloyd-Owen fuel transports, and using other coersive means against is competitor. British based Lloyd-Owen has a direct contract with the Iraq government to provide fuel to various parts of the country.

In his introductory remarks, Dorgan explained that Senate Republicans had blocked any attempts at having a formal bi-partisan hearing, resulting in a separate committee.


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In his introductory remarks, Dorgan explained that Senate Republicans had blocked any attempts at having a formal bi-partisan hearing, resulting in a separate committee. In 1999, he was chosen as one of the NBA's 50 greatest players of all time, and ESPN chose him at number 94 of the 20th century sports century 100 greatest athletes. British based Lloyd-Owen has a direct contract with the Iraq government to provide fuel to various parts of the country. He has worked as a commentator on basketball broadcasts. Allan Waller testified to specific examples of how KBR officials had conspired in blocking of Lloyd-Owen fuel transports, and using other coersive means against is competitor. He made a talking cameo appearance in 1994's movie Blue Chips, and has worked at different capacities for the Celtics since his playing days were over. The employees who talked to auditors were sent to camps under more fire than other camps, and Anaconda." This report led Dorgan and others to voice considerable outrage. Cousy has enjoyed a very public life in retirement.

"The threat of being sent to a camp under fire was their way of keeping us quiet. He felt that the resulting ambidexterity made him a better basketball player. The manager told me that I was being sent away until the auditors were gone, because I had talked to the auditors," Mayberry said. In the book, Cousy describes how breaking his right arm as a child forced him to play sports with his left hand. "I personally was sent to Falluja for three weeks. In about 1963 Cousy's best-selling autobiography "Basketball Is My Life" was published. In 2003 and 2004, Falluja had been well known as dangerous for foreign troops and civilians. During the 1973-74 season, the Royals' second in Kansas City, Missouri, he was replaced after the team's 6-16 start.

Mayberry also claimed would-be whistleblowers were threatened "to be sent to Falluja" and other "places under fire" if they talked to media or governmental oversight officials. He coached the Royals from 1969 to 1974, but was never able to help the team improve their record above 36-46. The recorded interviewer asked, "Are you saying that Halliburton deliberately falsified the number of meals they prepared and then submitted false claims for reimbursement and that they did this to make up for past amounts auditors had disallowed?" Mayberry firmly answered "yes." He said that serving expired food rations was "an everyday occurrence, sometimes every meal." He also explained that Halliburton systematically overcharged for the number of meals as well, saying, "they were charging for 20,000 meals and they were only serving 10,000 meals." Dorgan later commented, "obviously there's no honor here, by a company that would serve outdated food to our troops in Iraq.". Cousy originally retired after the Celtics' 1962-63 season, but returned seven years later and played seven games for the Cincinnati Royals, now the Sacramento Kings. He said that KBR routinely sold expired food rations to the Army. He also scored 16,960 points, and participated in the all-star game thirteen consecutive times, picking up the most valuable player award at that game in 1954 and 1957. Mayberry, still in Iraq, testified by video from questions prepared by the committee. Cousy is the Celtics' all time assist leader with 6,955 assists.

She testified to have been given misinformation in answer to her complaints, saying she was "overtly misled.". The five consecutive titles towards the end of his career were part of a Celtics' streak of eight consecutive championships. "Ultimately my main was concern was the repeated insistence RIO contract be awarded to KBR without competitive bidding," Greenhouse said. In the NBA, he led his team to six championships, including the 1957 one and five consecutive titles, from 1959 to 1963, after which he retired. Greenhouse, who provided the bulk of testimony, spoke for several minutes about her involvement in the evaluation and crafting of government Army contracts, and explaining how her superiors undermined and dismissed her concerns of illegal business practices. Cousy played at Holy Cross during his college career. Army Corps of Engineers, Rory Mayberry, former Food Program Manager for Halliburton subsidiary, and Allan Waller, of the Lloyd-Owen International security and operations firm. He is often referred to as "The Cooz," or "Houdini of the Hardwood.".

Among those testifying were Bunny Greenhouse, former Chief Contracting Officer of the U.S. Bob Cousy (born Robert Cousy, August 9, 1928 in New York City, New York) is a former basketball player, who played guard with the Boston Celtics from 1951 to 1963 and the Cincinnati Royals in the 1969-70 season. Among the senators and representatives present at the hearing were Byron Dorgan (presiding), Henry Waxman, Frank Lautenberg, and Mark Dayton. On June 27, 2005, the Democratic Party held a public committee, aired on C-SPAN 3, at which former civilian employees based in or administering operations in Iraq, testified to specific instances of waste, fraud, and other abuses and irregularities by Halliburton and its subsidiary Kellogg, Brown and Root (KBR). Vice President Dick Cheney and Halliburton, had led many to speculate with regard to improprieties and profiteering from the war.

The associations between U.S. Allegations of fraud by Halliburton, specifically with regard to its operations in Iraq, have persisted since before the Iraq War. These steps are not unusual for corporate executives who enter government. The officials also said he had promised to donate to charity any after-tax profits he made from exercising his stock options.

On the question of Cheney's deferred compensation from Halliburton, officials of the Bush-Cheney campaign said that 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. Dick Cheney also retains 433,000 share-equivalent unexercised stock options at Halliburton. Cheney's deferred compensation from Halliburton, which appeared on Cheney's 2001 financial disclosure statement, generated an income between $50,000 to $100,000 for the vice president. presidential election campaign with a severance package worth $20 million.

Cheney retired from the company during the 2000 U.S. Bill Gertz, defense reporter for The Washington Times, wrote: "Vice President Dick Cheney was chief executive officer of Halliburton from 1995 until 2000, and Democrats repeatedly have tried to link the administration to claims of government favoritism toward the firm." [4]. In recent years the company has become the center of many controversies involving the 2003 Iraq War and the company's ties to US Vice President Dick Cheney. 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.

Halliburton is the only company mentioned by terrorist Osama bin Laden in an April 2004 tape where he claims that "this is a war [in Iraq] that is benefiting major companies with billions of dollars.". They are expected to have generated more than $13 billion in sales by the time they start to expire in 2006 but most offer low margins - less than 2% on average in 2003 and just 1.4% this year for the logistics work. Despite cronyism allegations, the company's contracts in Iraq are much less profitable than its core energy business. In addition to troop support, Halliburton also provides air traffic control support; produces 74 million gallons of water a month for consumption, hygiene and laundry; deploys as many as 700 trucks a day to deliver essentials to American forces; and provides firefighter and crash-rescue services, as well as working to restore Iraqi oil infrastructure.

Halliburton's work in Iraq is diverse and complicated. Today KBR employ over 30,000 men and women in Iraq. 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.
.

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. Erle P. and Mrs. Mr.

Analysts at Deutsche Bank value KBR at up to $2.15 billion, while others believe it could be worth closer to $3 billion by the time management decides what to do with the business in 2005. 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 year from 2002 through 2004. As a result of the asbestos-related costs, Halliburton lost approximately $900 million U.S.

Asbestos-related litigation from the Kellogg acquisition caused the company to book over $4.0 (billion U.S.) in losses from 2002 through 2004. KBR is a major international construction company, which is a highly volatile undertaking subject to wild fluctuations in revenue and profit. Kellogg division of Dresser (which Dresser had merged with in 1988). 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.W.

This business continues to be profitable, and the company is a world leader in this industry; Schlumberger is the company's closest competitor. Energy Services, the company's historical bedrock, includes: drilling & formation evaluation, digital & consulting solutions, production volume optimization, and fluid Systems. . The KBR group is a major construction company of mainly refineries, oilfields & pipelines, and chemical plants.

The Energy Services Group provides technical products and services for oil and gas exploration and production. FY 2004) and over 95,000 employees, Halliburton operates in two major business segments. With revenues exceeding $20.46 (billion U.S. Halliburton Energy Services NYSE: HAL is a multinational corporation based in Houston, Texas.

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 oil rigs in the country's south. As of 2003, Halliburton was still operating in Iran. [2] [3]. In May 2003, Halliburton revealed in a filing with the Securities and Exchange Commission that its KBR subsidiary had paid a Nigerian official $2.4 million in bribes in order to receive favorable tax treatment.

[1]. In May 2003, Halliburton's role under contract with regard to Iraqi oilfields was expanded to include "operation of facilities and distribution of products". More recently, the subsidiary was awarded a no-bid contract to conduct oil well firefighting in Iraq worth an estimated $1 billion. In April 2002, KBR was awarded a $7 million contract to construct steel holding cells at Camp X-Ray.

In August, 2004, Halliburton paid a $7.5 million fine to settle the issue. Halliburton counters that the practice was approved by its accounting firm, Arthur Andersen, and conforms to generally accepted accounting practices. The Securities and Exchange Commission investigated the same issue. In 2002, Judicial Watch, a public action lawfirm, 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.

We are not performing directly in that country." No legal action has been taken against the company or its officials. No US person is facilitating any transaction. This is a foreign subsidiary and no US person is involved in this. A Halliburton spokesman, responding to inquiries from Dow Jones, said "This is not breaking any laws.

Such behaviour, undertaken while Cheney was CEO of Halliburton, may have violated the Trading with the Enemy Act. The company, HPS, operated "behind an unmarked door on the ninth floor of a new north Tehran tower block." 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. opened an office in Tehran. In 2001 it was reported by The Wall Street Journal that a subsidiary of Halliburton Energy Services called Halliburton Products and Services Ltd.

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 1998 Halliburton merged with Dresser Industries, which included Kellogg. In 1995 Dick Cheney became chairman and CEO. peacekeeping forces in Bosnia, Croatia and Hungary with food, laundry, transportation and other lifecycle management services.

In the Balkans conflict in the 1990s, KBR supported U.S. After having pleaded guilty, the company was fined $1.2 million, with another $2.61 million in penalties. 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. In the aftermath of Operation Desert Storm in Kuwait in 1991, Halliburton crews helped bring 320 burning oil wells under control.

1991: workforce - 73,000. 1982: energy industry decline. 1982: workforce - 115,000. 198?: Halliburton Logging Services.

198?: acquisition of Geosource. 1988: acquisition of Geophysical Service Incorporated from Texas Instruments. 1962: acquisition of Brown and Root of Houston, Texas. 1961: headquarters - Dallas, Texas.

1960: name shortened to Halliburton Company. 1957: acquisition of Welex Jet Services of Fort Worth, Texas. 1948: New York Stock Exchange listing. 1924: incorporation.

1921: headquarters - Duncan, Oklahoma. 1920: reorganized - Halliburton Oil Well Cementing Company.

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