Business Overview

Energy Services, a company's historical bedrock, includes: drilling & formation evaluation, digital & consulting solutions, production volume optimization, and fluid systems. This business continues to become profitable, & a company occurs as globe leader therein industry; Schlumberger is the company's closest challenger.

Using a acquisition of Dresser Industries in 1998, the Kellogg-Black & Root division (in 2002 renamed to KBR) was formed by merging Halliburton's Brown & Root (acquired 1962) subsidiary and the M.W. Kellogg section of Dresser (which Dresser experienced merged using inside 1988). KBR occurs as major international construction company, which occurs as extremely volatile undertaking subject to uncivilized fluctuations inside revenue & benefit. Asbestos-related litigation from either a Kellogg acquisition caused the company to book on top $4.Nought (billion U.S.) in losses from 2002 through 2004.

Following of the asbestos-related costs, Halliburton wasted more or less $900 million U.S. a year from 2002 through 2004.

At the meeting for investors & analysts inside August 2004, the project was defined to divest the KBR section across a conceivable sale, spin-off or initial public offering. Analysts at Deutsche Bank value KBR at up to $2.15 billion, when others imagine it can be worth nigher to $3 billion per instance management decides what to run by owning a business inside 2005.

Corporate Governance
Todays members of the board of directors of Halliburton are: Robert Crandall, Kenneth Derr, S. Malcom Gillis, W.R. Howell, Ray Hunt, David Lesar, J. Landis Martin, Jay Precourt, and Debra Reed.

History
1919 to 1990
Mr. & 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: title shortened to Halliburton Company 1961: headquarters - Dallas, Texas 1962: acquisition of Brown and Root of Houston, Texas 198?: acquisition of Geosource 1982: workforce - 115,000 1982: energy industry decline 1988: acquisition of Geophysical Service Incorporated from Texas Instruments 1988: Halliburton Logging Services 1991: workforce - 73,000

1990s
In a aftermath of Operation Desert Storm in Kuwait in 1991, Halliburton crews helped bring 320 burning oil wells under control. In a early 1990s Halliburton was found to exist as inside violation of federal trade barriers inside Iraq and Libya, having sold these countries dual-utilize oil drilling devices &, across its previous subsidiary, Halliburton Logging Services, sending captain hicks pulse neutron generators to Libya. Fallowing with pleaded hangdog, a company was fined $1.Two million, sustaining a second $2.61 million around penalties. In a Balkans conflict in the 1990s, KBR supported U.S. peacekeeping forces inside Bosnia, Croatia and Hungary with food, laundry, transport & more 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 a Dresser section (excluding a previous Kellogg division) entered an agreement to separate itself over again from either Halliburton by management purchasing its stock, the newly company to become known as Dresser Inc.

In 2001 it was reported by The Wall Street Journal that a subsidiary of Halliburton Energy Services known as Halliburton Products & Services Ltd. open an professional within Tehran. A 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 each a logotype & title of Halliburton Energy Services &, based on data from Dow Jones Newswires offers services from Halliburton units globe-wide across its Tehran professional. Such behaviour, undertaken when Cheney was CEO of Halliburton, might keep around violated a Trading with the Enemy Act. The Halliburton spokesman, responding to inquiries from either 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." There is no legal action has been taken against a company or even its officials.

In 2002, Judicial Watch, a public actiin lawhouse, filed lawsuit on behalf of shareowner against Halliburton, its todays & previous directors, & its accounting firm, Arthur Andersen LLP and Arthur Andersen Worldwide, for alleged accounting irregularities, said to become profits inflation by accounting for numbers overruns when revenue. The U.S. Securities and Exchange Commission (SEC) investigated the same issue. Halliburton counters that a practice was approved by its accounting house, Arthur Andersen, & conforms to usually accepted accounting practices. Within August, 2004, Halliburton paid the $7.Five million amercement to settle a issue.

In April 2002, KBR was awarded a $7 million contract to construct steel holding cells at Camp X-Ray. Additional recently, the subsidiary was awarded a no-bid contract to conduct oil well firefighting within Iraq worth an judged $1 billion. Inside Could 2003, Halliburton's role under locate regard to Iraqi oilfields was expanded to include "operation of facilities and distribution of products". [http://news.bbc.co.uk/2/hi/business/3006149.stm]

inside Might 2003, Halliburton revealed in SEC filings that its KBR subsidiary had paid the Nigerian official $2.4 million around bribes in order to receive favorable tax coarse of action. [http://www.theage.com.au/articles/2003/05/10/1052280472817.html] [http://www.chron.com/cs/CDA/ssistory.mpl/business/1902750]

As of 2003, Halliburton was still operating around Iran. CNN, in the report entitled "US companies are operating in Iran despite sanctions," reported that a Halliburton interpreter told the news organisation that HPS aids Iran build oilrig in the united states's south.

In September 2005, Under a competitory bid contract go it won within July of 2005, to provide detritus removal & more emergency function associated by owning natural disasters, KBR began assessment of the cleanup & reconstruction of Gulf Coast U.S. Marine and U.S. Navy facilities that were damaged in the aftermath of Hurricane Katrina. A facilities include: Naval Air Station Pascagoula, Naval Station Gulfport, Stennis Space Center within Mississippi, two little U.S. Navy facilities around New Orleans and others in the Gulf Coast region. KBR has got similar contracts for other than Xv years.

Iraq Controversy
KBR has contracts around Iraq worth as much as $18 billion, including one no-bid contract known as "Restore Iraqi Oil" (RIO) which has an estimated worth of $7 billion.

Now KBR employs all over 30,000 men & women inside Iraq. Halliburton's operate inside Iraq is diverse & complicated. Additionally to troop trend lines, Halliburton when well will bring air traffic control trend lines; green groceries 74 million gallons of the river the year for consumption, hygiene & cleaning; deploys when several when 700 trucks a day to deliver necessary to Our contries forces; & will bring fire fighter & crash-rescue services, besides as working to restore Iraqi oil infrastructure.

Despite cronyism allegations, a company's contracts inside Iraq come tremendously less profitable than its core energy business. It is potential to develop generated to a higher degree $13 billion witharound sales per period it run to expire in 2006 however virtually all offer moo margins - less than 2% on average inside 2003 & simply I.4% this season for the logistics work.

Halliburton is the merely 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) uncovered $108 million within "questioned costs" &, when of mid-March 2005, said they however experienced "major" unsolved issues using Halliburton.

Dick Cheney ties
Within recent years a company has be a center of several contention involving a 2003 Iraq War and the company's ties to Usa 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." [http://www.washtimes.com/national/20041006-012159-1086r.htm].

Cheney retired from either a company in the period of 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 fiscal revelation statement, generated an income between $50,000 to $100,000 for the vice president. Dick Cheney besides retains 433,000 part-same unexercised stock options at Halliburton.

On the wonder of Cheney's postponed compensation from either either Halliburton, officials of a Bush-Cheney campaign said that prior to typing professional within 2001, Cheney bought an policy that guaranteed the fixed total of deferred payments from Halliburton both month for 5 years then that the payments would non depend on the company's fortunes. A officials likewise said he experienced promised to donate to charity any when-tax success he processed from either exercising his option choices. These steps are non unusual for corporate executives world health organization enter government.

Allegations of fraud
Allegations of fraud by Halliburton, specifically by having regard to its operations around Iraq, keep around persisted since prior to a Iraq War. A associations between U.S. Vice President Dick Cheney & Halliburton, had led numerous to speculate by using regard to improprieties and profiteering from the war.

In June 27, 2005, the Democratic Party held a public committee, aired in C-SPAN 3, at which former civilian employees depending around or even administering operations inside Iraq, testified to specific cases of waste, fraud, & more abuses & irregularities by Halliburton & its subsidiary Kellogg, Brown and Root (KBR).

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

Among people testifying were Bunny Greenhouse, former Chief Getting 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.

Nursery, world health organization provided a bulk of testimony, spoke for many minutes just about her involvement in the evaluation & crafting of government Army contracts, & explaining how else her superiors undermined & dismissed her concerns of illegal business practices. "Ultimately my main concern was the repeated insistence RIO contract be awarded to KBR without competitive bidding," Glasshouse said. She testified to own lean misinformation around guide to her complaints, saying she was "overtly misled."

Mayberry, however inside Iraq, testified by streaming video from either questions prepared per committee. He said that KBR habitually sold expired food rations to the Army.

A 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 besides explained that Halliburton consistently overcharged for the total of meals too, expression, "they were charging for 20,000 meals and they were only serving 10,000 meals." Dorgan late commented, "obviously there's no honor here, by a company that would serve outdated food to our troops in Iraq."

Mayberry likewise claimed would-manque whistleblowers were threatened "to be sent to Falluja" and other "places under fire" whenever it talked to media or even governmental oversight officials. Inside 2003 & 2004, Falluja experienced been easily referred to as unsafe for foreign troops & 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 else KBR officials got conspired around block of Lloyd-Owen fuel transports, and utilizing more coercive means against its competition. British depending Lloyd-Owen has a directly locate the Iraq government to provide fuel to various area of the united states.

Withwithin his introductory remarks, Dorgan explained that Senate Republicans experienced blocked any tries at getting the formal bi-two-way hearing, resultant in the separate committee.