Halliburton loses Iraqi oil deal


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Halliburton loses Iraqi oil deal

Department of Defense replaces Army Corps of Engineers and will open Iraq contract to new bids.

December 31, 2003: 12:57 PM EST

WASHINGTON (CNN) - Just weeks after a Pentagon audit questioned whether Halliburton overcharged the U.S. government in a contract to bring fuel into Iraq, the Department of Defense has replaced the Army Corps of Engineers in overseeing that mission, officials said Tuesday.

http://money.cnn.com/2003/12/31/news/inter...urton/index.htm

interesting. who woulda thought this could happen. Im glad it happened though.

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some interesting points from your link and another...

Link: However, there is no allegation that Halliburton unduly profited from the overpriced gas. Rather, the audit questions whether Halliburton paid above-market rates to a Kuwaiti subcontractor when it paid $2.27 per gallon for the gas, compared to another supplier who got gas at $1.18 per gallon from Turkey.

"Halliburton has repeatedly tried to transfer the fuel delivery mission to a local supplier because it is dangerous for our people. So far, no one, including the Corps or the CPA (Coalition Provisional Authority), has been able to find a replacement for Halliburton," the statement said.

Link: The Defense Energy Support Center said it will award contracts through a competitive bidding process in contrast to the no-bid contract awarded in March to Halliburton's Kellogg Brown & Root (KBR) unit to rebuild Iraq's oil industry.

In response to questions posed by Pentagon auditors, KBR President and CEO Randy Harl, said the firm "delivered fuel to Iraq at the best value, the best price and the best terms," in response to questions posed by Pentagon auditors.

Harl added that the U.S. military had approved the delivery of fuel from Kuwait, even though it was at a higher cost than that available via Turkey.

KBR was the first to suggest ways of cutting costs and had suggested Turkey was a better source than Kuwait for getting fuel into Iraq, adding that the recommendation resulted in a $164 million savings for American taxpayers.

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