Monday, March 12, 2007

Halliburton CEO moves from Houston to Dubai By JIM KRANE Associated Press Writer © 2007 The Associated Press DUBAI, United Arab Emirates [~] Oil services giant Halliburton Co. will soon shift its corporate headquarters from Houston to the Mideast financial powerhouse of Dubai, chief executive Dave Lesar announced Sunday. "Halliburton is opening its corporate headquarters in Dubai while maintaining a corporate office in Houston," spokeswoman Cathy Mann said in an e-mail to The Associated Press. "The chairman, president and CEO will office from and be based in Dubai to run the company from the UAE." Lesar, speaking at an energy conference in nearby Bahrain, said he will relocate to Dubai from Texas to oversee Halliburton's intensified focus on business in the Mideast and energy-hungry Asia, home to some of the world's most important oil and gas markets. "As the CEO, I'm responsible for the global business of Halliburton in both hemispheres and I will continue to spend quite a bit of time in an airplane as I remain attentive to our customers, shareholders and employees around the world," Lesar said. "Yes, I will spend the majority of my time in Dubai." Lesar's announcement appears to signal one of the highest-profile moves by a U.S. corporate leader to Dubai, an Arab boomtown where free-market capitalism has been paired with some of the world's most liberal tax, investment and residency laws. "The eastern hemisphere is a market that is more heavily weighted toward oil exploration and production opportunities and growing our business here will bring more balance to Halliburton's overall portfolio," Lesar said. In 2006, Halliburton [~] once headed by Vice President Dick Cheney [~] earned profits of $2.3 billion on revenues of $22.6 billion. More than 38 percent of Halliburton's $13 billion oil field services revenue last year stemmed from sources in the eastern hemisphere, where the firm has 16,000 of its 45,000 employees. Cheney was Halliburton's chief executive from 1995-2000 and the Bush administration has been accused of favoring the conglomerate with lucrative no-bid contracts in Iraq. Federal investigators last month alleged Halliburton was responsible for $2.7 billion of the $10 billion in contractor waste and overcharging in Iraq. Halliburton last month announced a 40-percent decline in fourth-quarter profit, despite heavy demand for its oil field equipment and personnel. ___ 8:41:16 AM    comment []

Raymond J. Learsy: $20 Billion Later Halliburton Moves Headquarters to Dubai. Business must be slowing down in Iraq. After booking over $20 billion in revenues from its work in Iraq, some on no bid contracts and now under Congressional scrutiny for both the quality of its work and billing practices, Halliburton is moving its headquarters from Houston to Dubai. The company together with its KBR unit has been the Pentagon's largest contractor in Iraq. The move is being met with outage on Capitol Hill. Senator Patrick Leahy (D. Vermont) and chairman of the judiciary committee voiced his anger, "This is an insult to the U.S. soldiers and taxpayers who paid the tab for their no bid contracts and endured their overcharges for all these years". Halliburton's chief executive David Lesar told reporters, "At this point in time we clearly see there are greater opportunities in the eastern hemisphere than the western hemisphere". Halliburton did say it would maintain its legal registration in the United States. You see, that's not altogether unimportant if you want to continue doing business with the Pentagon. And where exactly are Mr. Lesar and his band of brothers moving to? Let me quote from an article found this day on BBC News by one Masud Alam a reporter from BBC's Urdu service under heading "A Pakistani laments Dubai": "Dubai has always wanted to be something different from what it is. It has metamorphosed from a tiny fishing village to a modern city, then a shopper's paradise, a playground for the rich, a tourist's haven and a lot more in just over half a century... The city's skyline is made up of cranes." He then goes on "One aspect that hasn't changed in all these years is Dubai's fixation on 'quality expatriates'- a euphemism for White Europeans, or the rich and famous, or in particular the rich and famous white Europeans". Continuing, "I used to work for newspaper here that paid different salaries to employees of different qualifications and work experience, based on their ethnic origin. Whites topped the list, followed by Arabs, Indians and Pakistanis, the Filipinos, the Bangladeshis...This bias seems to be institutionalized now. "The Asians, who make up the entire labour force that builds these fancy structures, are still the worst paid workers, forced to live in out of town labor camps away from their loved ones for years at a stretch because they cannot afford to travel back home or bring their families to live in Dubai. "A recent newspaper survey found that the labourers pay and benefit packages have not been revised in more than a decade whereas the cost of living has doubled or trebled in sectors like housing, healthcare and utilities." A company's values come from its leadership and its traditions. Maybe we should simply bid good riddance to Halliburton. But somebody on Capitol Hill should look into their continuing registration as a United States company. [The Huffington Post | Full Blog Feed] 8:40:12 AM    comment []

© Copyright 2007 Patricia Thurston.