Cheney's Halliburton will Control Pumping of Iraq Oil

Wednesday, 07 May 2003 03:53 by: Anonymous

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  New Furor Over Halliburton
  By Larry 0aMargasak
  CBS News | Associated Press

  Wednesday 07 May 2003

  WASHINGTON -- Halliburton Co.'s emergency, no-bid contract to 0awork on Iraq's oil wells must be fully disclosed, a Democratic lawmaker says, 0apointing to the Army's admission that the company has a far more lucrative role 0athan originally believed.

  Prior descriptions said Vice President Dick Cheney's former 0acompany would fight oil fires. The contract also lets the company operate the 0aoil fields for a time and distribute the petroleum, Rep. Henry Waxman, D-Calif., 0asaid Tuesday. Waxman cited information he received from the U.S. Army Corps of 0aEngineers, which awarded the contract.

  Cheney's office has said repeatedly that the vice president has 0ano role in Halliburton's operations or its government contracts.

  A spokeswoman for Halliburton said the company's initial 0aannouncement of the contract on March 24 disclosed the larger role for its KBR 0asubsidiary.

  The Corps wrote Waxman last Friday that the contract included not 0aonly extinguishing fires but "operation of facilities and distribution of 0aproducts."

  "I do not mean to suggest that the Corps has intentionally misled 0aanyone about the contract," Waxman wrote Tuesday to Corps commander Lt. Gen. 0aRobert Flowers. "I am, however, concerned that the administration's reluctance 0ato provide complete information about this and other Iraqi contracts has denied 0aCongress and the public important information."

  The lawmaker also said the Corps' proposal to replace the 0aHalliburton contract with another long-term deal was at odds with administration 0astatements that Iraq's oil belongs to the Iraqi people.

  KBR was given the right to extinguish the oil fires under an 0aexisting, contingency contract. Carol Sanders, a spokeswoman for the Corps of 0aEngineers, said officials were reviewing Waxman's letter but had no immediate 0aresponse.

  Halliburton spokeswoman Wendy Hall pointed to the company's 0aannouncement of the contract in March, which she said revealed the extent of the 0awork.

  The release said: "KBR's initial task involves hazard and 0aoperational assessment, extinguishing oil well fires, capping oil well blowouts, 0aas well as responding to any oil spills. Following this task, KBR will perform 0aemergency repair, as directed, to provide for the continuity of operations of 0athe Iraqi oil infrastructure."

  Hall said KBR is assisting Iraq's oil ministry to get the oil 0asystem operating.

  Waxman countered, "Only now, over five weeks after the contract 0awas first disclosed, are members of Congress and the public learning that 0aHalliburton may be asked to pump and distribute Iraqi oil under the contract."

  Waxman also has repeated the Corps' statement that the contract 0acould be worth up to $7 billion for up to two years, but the Corps said that 0afigure was a cap based on a worst-case scenario of oil well fires. In fact, few 0awells were burning during the war with Iraq and the Corps said that by early 0aApril, the company had been paid $50.3 million.


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  Halliburton Deal Includes Pumping and Distributing Iraqi 0aOil
  By Larry Margasak 
  Associated 0aPress

  Wednesday 07 May 2003

  WASHINGTON - Halliburton Co.'s emergency, no-bid contract to work 0aon Iraq's oil wells must be fully disclosed, a Democratic lawmaker says, 0apointing to the Army's admission that the company has a far more lucrative role 0athan originally believed.

  Prior descriptions said Vice President Dick Cheney's former 0acompany would fight oil fires. The contract also lets the company operate the 0aoil fields for a time and distribute the petroleum, Rep. Henry Waxman, D-Calif., 0asaid Tuesday. Waxman cited information he received from the U.S. Army Corps of 0aEngineers, which awarded the contract.

  Cheney's office has said repeatedly that the vice president has 0ano role in Halliburton's operations or its government contracts.

  A spokeswoman for Halliburton said the company's initial 0aannouncement of the contract on March 24 disclosed the larger role for its KBR 0asubsidiary.

  The Corps wrote Waxman last Friday that the contract included not 0aonly extinguishing fires but "operation of facilities and distribution of 0aproducts."

  "I do not mean to suggest that the Corps has intentionally misled 0aanyone about the contract," Waxman wrote Tuesday to Corps commander Lt. Gen. 0aRobert Flowers. "I am, however, concerned that the administration's reluctance 0ato provide complete information about this and other Iraqi contracts has denied 0aCongress and the public important information."

  The lawmaker also said the Corps' proposal to replace the 0aHalliburton contract with another long-term deal was at odds with administration 0astatements that Iraq's oil belongs to the Iraqi people.

  KBR was given the right to extinguish the oil fires under an 0aexisting, contingency contract. Carol Sanders, a spokeswoman for the Corps of 0aEngineers, said officials were reviewing Waxman's letter but had no immediate 0aresponse.

  Halliburton spokeswoman Wendy Hall pointed to the company's 0aannouncement of the contract in March, which she said revealed the extent of the 0awork.

  The release said: "KBR's initial task involves hazard and 0aoperational assessment, extinguishing oil well fires, capping oil well blowouts, 0aas well as responding to any oil spills. Following this task, KBR will perform 0aemergency repair, as directed, to provide for the continuity of operations of 0athe Iraqi oil infrastructure."

  Hall said KBR is assisting Iraq's oil ministry to get the oil 0asystem operating.

  Waxman countered, "Only now, over five weeks after the contract 0awas first disclosed, are members of Congress and the public learning that 0aHalliburton may be asked to pump and distribute Iraqi oil under the 0acontract."

  Waxman also has repeated the Corps' statement that the contract 0acould be worth up to $7 billion for up to two years, but the Corps said that 0afigure was a cap based on a worst-case scenario of oil well fires. In fact, few 0awells were burning during the war with Iraq and the Corps said that by early 0aApril, the company had been paid $50.3 million.

  Click here for Waxman's letter to Flowers.

   For 0amore stories on: Halliburton

  (In accordance with Title 17 U.S.C. Section 107, this material 0ais distributed without profit to those who have expressed a prior interest in 0areceiving the included information for research and educational 0apurposes.)

Last modified on Monday, 21 April 2008 13:39