IRAQ: Halliburton U.S. Army Contract Could Be Worth $6 Billion Extra
Congress in July approved a Bush administration request for $25 billion extra in fiscal 2005 and is now weighing a request for $75 billion more. Of that $100 billion, $6 billion could go to Halliburton, the world's second-biggest oilfield services compan
Supplemental funding this year for military operations in Iraq could add $6 billion to the value of Halliburton Co.'s contract with the U.S. Army, the service said.
Halliburton's emergency services contract would be worth $16.5 billion, up from $10.5 billion, according to charts released today at the Pentagon outside Washington. The company has been paid $7.2 billion to date.
Congress in July approved a Bush administration request for $25 billion extra in fiscal 2005 and is now weighing a request for $75 billion more. Of that $100 billion, $6 billion could go to Halliburton, the world's second-biggest oilfield services company, according to the Army charts.
Halliburton's Kellogg, Brown & Root unit supplies everything from housing to daily meals for the 155,000 U.S. troops stationed in Iraq and Kuwait and 18,000 in Afghanistan.
Halliburton, based in Houston, became the sixth-largest U.S. military contractor last year because of its work to help rebuild Iraq and care for U.S. troops.
Halliburton won the so-called Logistics Civil Augmentation Program, or LOGCAP, contract in 2001 to provide combat logistics support worldwide for the U.S. Army.
The bulk of the contract provides for on-demand meals, housing and transportation services in Iraq. Of the $10.5 billion obligated now, only $917 million has been for work in Afghanistan, compared with $9.53 billion for Iraq work, according to the Army.
Profit on KBR's Iraq-related work in the fourth quarter of 2004 was $13 million on $1.7 billion in revenue, Halliburton said. Sixty Halliburton staff or contractors have died in Iraq, the company reported Jan. 28.
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