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mburbank mburbank is offline
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Old May 7th, 2003, 12:32 PM        WATCH THIS STORY
Remember when I told you all to keep an eye on the Enron story?

My nose for news says keep your eye on this one.



Full Disclosure Eyed on Halliburton Deal

By LARRY MARGASAK, Associated Press Writer

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

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

Cheney's office has said repeatedly that the vice president has no role in Halliburton's operations or its government contracts.

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

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

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

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

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

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

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

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

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

Waxman also has repeated the Corps' statement that the contract could be worth up to $7 billion for up to two years, but the Corps said that figure was a cap based on a worst-case scenario of oil well fires. In fact, few wells were burning during the war with Iraq and the Corps said that by early April, the company had been paid $50.3 million.
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KevinTheOmnivore KevinTheOmnivore is offline
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Old May 7th, 2003, 01:11 PM       
Yeah, I read an article similar to this, Max. KBR, like the article stated, won't be making as much money off of the deal, simply because the scorched earth technique either never happened or was prevented.

I would definitely be interested to know more about the relationship between Halliburton and the Iraqi oil ministry, though. Correct me if I'm wrong, but isn't it odd that Iraq doesn't even have a firmly established government, yet the Oil Ministry from the OLD regime is still maintained?
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Old May 8th, 2003, 09:09 AM       
Indeed. For me, the core of the story is this. Awarded the oil rig extinguishing contract without bid is arguably legitimate. They are the best and they have previous experience in the region. Awarding the restoration, pumping nd distribution rights to Haliburton without bid under the same contract? Their can't even be an explanation. Supposedly this is a short term thing, and once Iraqi oil is flowing smoothly the contract will be bid out. We'll see.

I'm particularly interested about Hallliburton getting a distinctly non capitalist contract whenb they've been caught overcharging the government on contracts they already have and very recently too. More details as I get them.
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Old May 8th, 2003, 08:17 PM       
Below I have pasted an interesting article from 4/29 on the status of Iraqi ministries.

Some note worthy points:

1. Apparently ALL Iraqi ministries have been ordered to continue "business as usual," and can only make changes with the permission of a "coalition provisional authority."

2. Apparently ORHA will be setting up a semi-permanent office within the Iraqi Oil Ministry.

3. Apparently Mazen Jumaa, former Deputy Minister over Oil, is now running the show (more on that to follow)


Copyright 2003 Energy Intelligence Group, Inc.
International Oil Daily


April 29, 2003

SECTION: FEATURE STORIES

LENGTH: 954 words

HEADLINE: US Asserts Authority at Iraqi Oil Ministry

BODY:
A senior US official from the Office of Reconstruction and Humanitarian Assistance (ORHA) made a first visit to the Iraqi oil ministry in Baghdad on Tuesday, delivering instructions from ORHA chief Jay Garner that the status quo be preserved at the ministry for the time being.

In the first meeting since the collapse of Saddam Hussein's regime and the occupation of Iraq by US forces, ORHA senior oil adviser Gary Vogler delivered a letter from Garner to Mazen Jumaa. Jumaa was deputy oil minister under Saddam's oil minister, Amer Rashid, and is now the highest official at the ministry since Rashid's disappearance and his surrender to US forces on Monday.

The letter, a copy of which was seen by International Oil Daily, contains general instructions that apply to all ministries, are effective immediately, and are to remain in effect "until they are replaced by directives, regulations, or legislation of a democratically established institution of Iraq." "Do not substitute or change any minister, official, or any other employee within the ministry without specific approval of a coalition provisional authority," reads the first point in the letter.

"Do not accept directives from any other than a coalition provisional authority," states the second point.

"All ministers, officials, and employees should continue their normal daily activities and report daily to their places of work until told otherwise," says the last of the three instructions.

According to Jumaa, Vogler -- who was accompanied by an officer of the US Army Corps of Engineers (USACE) -- requested that a meeting be organized for next Saturday with the directors of the seven departments of the ministry as well as the directors of the 15 companies under the auspices of the oil ministry. "The American presence here is a de facto situation. But at least we know who we are dealing with now," Jumaa told Energy Intelligence after his meeting with Vogler.

To help him do his job of helping the Iraqi oil sector resume operations, Vogler asked that the ministry officials give him a list of their priorities, Jumaa said. "We told him that the main problem we face is the lack of security and the fact that anyone from any political party can walk in and ask that we deliver free gasoline," Jumaa said.

Other problems are related to the lack of communication within the oil sector and the lack of coordination with other public institutions and facilities, including power stations, as the telecommunication network has been down.

After meeting Jumaa, Vogler said, "One of the things we heard in various ministries is we need some type of formal documentation identifying people in positions."

Officers from USACE have been coordinating with North Oil Co. in Kirkuk and South Oil Co. in Basrah to bring oil production back at a limited rate to satisfy domestic needs. However, there was no word at Vogler's meeting with Jumaa on who defines oil policy and whether the US will have a role when it comes to policy issues.

Vogler did not mention the oil advisory board of Iraqis and Westerners, which is being set up by the Pentagon to oversee policy at the oil ministry and is expected to arrive in Baghdad this week. But a coordinator from ORHA might establish an office at the ministry. "He mentioned we might like them to be present at the ministry, and my expectation is that they will have an office here," Jumaa said.

The oil ministry will not have a new minister, however, until an interim Iraqi government is established. A meeting of about 300 representatives of different political, ethnic, and religious groups returning from exile and from inside Iraq on Monday debated the form and characteristics of the future interim authority, and agreed to meet again in four weeks to select one.

The oil ministry, the only public building protected by the US Army from torching -- though not from looting -- after the collapse of the Baath government, was the first to reopen its doors to some of the employees and to pay April salaries.

For three weeks, however, the ministry has been functioning with minimal resources and without clear direction or any assigned authorities. Hit by this void, an ad hoc task force, which was set up 10 days ago at the initiative of senior ministry officials to try to jumpstart refineries and coordinate the pumping of crude from Iraq's oil fields, has all but come to a standstill.

"The best thing is to sit and wait until we know who is going to run the ministry and who will have the authority to issue directives," one member of the task force told International Oil Daily this week.

Vogler's initial meeting came more than one week after he, Garner, and other ORHA staff made their way from Kuwait to Baghdad, and days after Garner and his coordinators started meeting with city officials to present the ORHA objectives.

Jumaa, who was appointed senior deputy oil minister in February after serving in the higher education sector for the last 20 years, says he's convinced the US will leave things largely in the hands of the Iraqis. "The Iraqi oil sector is more than 75 years old and it has its own system that is working. They will rely heavily on the Iraqis once they see their capabilities," he said.

Even when it comes to exporting Iraqi oil, he said, those who have been handling this for years under the State Oil Marketing Organization should continue to do it -- but not before a government is set up. "We are ready to export oil, and we know the world wants to buy our oil. But there is a policy issue here, and we have to wait until there is an Iraqi authority to define such policy. We will implement whatever politicians decide," Jumaa said.

Ruba Husari, Baghdad

LOAD-DATE: April 30, 2003
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Old May 30th, 2003, 10:08 AM       
Halliburton govt. contracts total $600 million
Christian Science Monitor

Vice President Dick Cheney's former company already has garnered more than $600 million in military work related to the wars in Afghanistan and Iraq, and potentially could earn billions more without having to compete with other companies.

As the Army's sole provider of troop support services, Halliburton's Kellogg Brown & Root subsidiary has received work orders totaling $529.4 million related to the two wars under a 10-year contract that has no spending ceiling.

Rather than put the Iraq work up for bidding, the government has used the 2001 Halliburton contract to place the various work orders in Iraq, prompting criticism from some Democrats that Cheney's former company is receiving favored treatment.

"The amount Halliburton could receive in the future is virtually limitless," said Rep. Henry Waxman, D-Calif., who disclosed the troop support work orders Thursday. "It is simply remarkable that a single company could earn so much money from the war in Iraq."
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Old May 30th, 2003, 11:27 AM       
That fits right into the scheme of things:

1. U.N. fails to find "Weapons of Mass Destruction" So we'll have to go to war to route them out.

2. Oops! No weapons yet ... but Saddam's still an evil man with the potential to use WMD. "What about North Korea?". "Well, yeah. They're evil too but these guys look like those other evil bastards who did evil shit so we'll go after them first!". "Oh, OK" :/

3. Still no WMD, Mr. President! "Patience. We'll find them once we crush those inf ... erm ... the oppostion forces who punish their gentle public so evilly." "What about other poor countries where that is the case?" "They don't have pet ... erm ... poisonous gases raining down on their people. Besides, we're fighting for the democracy of the people. That was our goal all along."

4. The war is over. Saddam no a qui. :/ WMD no a qui. :/ "Yeah, but we gave the power back to the peace loving people ... erm .. except for those looters." "I thought you had a plan to build a democracy." "We do ... that was part of a contigency plan. We also plan to contract big oil corporations to work on the oil rigs and provide jobs for the people (my personal conjecture towards a future quote :wink ) and stabalize things for those poor people."

5. "So you have no Saddam, no WMD, and no viable government at this point, right? In fact, it's almost if you went in there with no plan or concern to rebuild the country at all. You did; however, kick their ass and give a lucrative contract to a U.S. oil company."

6. Suprised? A show of hands please. :/
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