Halliburton moving to Dubai?

Discussion in 'Stocks' started by isaac000, Mar 12, 2007.

  1. 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.
  2. I've been watching HAL for some time.

    Is it a buy?

    Those declining profits are frightening. What's up with that?
  3. Halliburton's Dubai move sparks US political ire

    by Justin Cole

    WASHINGTON (AFP) - Halliburton's decision to move its base from Texas to Dubai sparked a political firestorm Monday as Senator Hillary Clinton and other top Democrats expressed outrage at the oil services giant.

    Halliburton, headed by Dick Cheney from 1995 to 2000 before he became vice president, said Sunday it was relocating to the United Arab Emirates to capitalize on the Gulf region's booming energy market.

    "Does this mean they are going to quit paying taxes in America?" asked Clinton, a US presidential candidate.

    "They get a lot of government contracts, is this going to affect the investigations that are going on? Because we have a lot of evidence of misuse of government contracts and how they have cheated the American soldier and cheated the American taxpayer," Clinton, speaking in New York, said of Halliburton.

    The firm and its former KBR subsidiary, which is being spun off, have endured several contracting controversies and investigations since Halliburton was awarded a no-bid 2.4 billion dollar contract to supply the US military on the eve of the US-led invasion of Iraq in 2003.

    KBR agreed last year to pay the US government eight million dollars to settle fraud claims related to an Army supply contract. Halliburton's Nigerian operations have also come under US government scrutiny in recent years.

    "It's an example of corporate greed at its worst," said Democratic Senator Patrick Leahy (news, bio, voting record), chairman of the Senate Judiciary Committee.

    "At the same time they'll be avoiding US taxes, I'm sure they won't stop insisting on taking their profits in cold hard US cash," Leahy charged.

    Halliburton spokeswoman Melissa Norcross said, however, that Halliburton would still remain incorporated in the United States and that there would be no layoffs as a result of its move.

    "As such, we anticipate absolutely no tax benefits from this decision," Norcross said.

    Halliburton's chief executive, Dave Lesar, will move his office from Houston, Texas, to Dubai, but Norcross said other top officers would remain situated in Houston.

    Halliburton said it was relocating to Dubai for business reasons and that Lesar would oversee a ramped-up effort to win regional oil services contracts and related business.

    Democratic Senator Byron Dorgan (news, bio, voting record) said he would seek a congressional review of Halliburton's announcement.

    "I want to know, is Halliburton trying to run away from bad publicity on their contracts? Or are they trying to set up a corporate presence in Dubai so that they can avoid the restrictions that currently exist on doing business with prohibited countries like Iran?" Dorgan questioned.

    Karen Lightfoot, a spokeswoman for Democratic Congressman Henry Waxman (news, bio, voting record), said the lawmaker might seek a hearing in the House of Representatives.

    "This is a surprising development. I want to understand the ramifications for the US taxpayer and national security," Waxman, the chairman of the House Oversight and Government Reform Committee, said.

    Halliburton said that over 38 percent of its 13 billion dollar oil-field services revenue was generated from the eastern hemisphere.

    It also said its move to the United Arab Emirates was the next step in a strategic plan unveiled in 2006 to boost its business with national oil companies in and around the Gulf.

    Houston mayor Bill White was supportive of Halliburton's move.

    "The mayor says he understands the nature of the decision," said Frank Michel, a spokesman for White. "He doesn't think it will negatively impact Houston or our status as an international energy center."

    Halliburton's move is likely to bolster the image of Dubai as an up-and-coming business capital. The city is undergoing a construction bonanza, especially of luxurious tourist hotels.

    The UAE's rulers are vying to develop Dubai as a corporate, tourism and financial hub lying between Europe and Asia. The kingdom neighbors oil-rich Saudi Arabia to its west and Oman to its east, while its northern coastline nestles the Gulf across a stretch of water from Iran.

    However, its move may also spur critics of US regulation who say corporate reform laws of recent years have become too onerous and are harming the US' business environment.

    Halliburton's stock closed up 17 cents at 32.19 dollars. It operates in 70 countries and has over 45,000 employees.
  4. Has anyone else noticed the irony here? After the liberals have cursed HAL to the high heavens, they now say, "Don't leave!".:D
  5. "Has anyone else noticed the irony here? After the liberals have cursed HAL to the high heavens, they now say, "Don't leave!"."

    Whaz up with that? I thought we had some family values. Bush, Hal and joe taxpayer, one big happy family. And now this?

    Seriously the irony is not lost on many of us, but I worry for the childrens sake. We can't keep this up, not good for the next generation.
  6. Efroe


    I keep trying to figure out why anyone cares? :confused:
  7. I agree! Relocating the NYSE to Dubai shouldn't cause a stir either