Halliburton ( VP Cheney's old firm ) Charges Into Iraq.. go ahead James take a shot !

[MORTARDUDE]

http://www.fool.com/news/take/2003/take030325.htm

Halliburton Charges Into Iraq
A division of Halliburton (NYSE: HAL) named Kellogg Brown & Root (KBR) has been awarded a contract from the U.S. Army Corps of Engineers to work in Iraq. The size of the contract was not disclosed, but estimates put it near $1 billion.

For now, Halliburton's KBR unit will douse oil fires in Iraq and repair the country's weakened or damaged oil production infrastructure, where possible. Responsibilities after the war are yet to be divvied out. Halliburton is also working with the U.S. government in Afghanistan, Uzbekistan, Jordan, and other countries under a 10-year contract from the Pentagon awarded in December 2001.

Halliburton is the first of many U.S. corporations that will surely be asked to help, and profit from, the rebuilding of Iraq. It is an especially auspicious first awardee, however, because Dick Cheney was CEO of Halliburton until 2000. Upon entering the vice president's office, Cheney divested himself of his holdings, although he reportedly still receives about $1 million a year in compensation from the company.

Halliburton claims to have won the first Iraq contract because it was the only firm able to launch its services on short notice. Rebuilding Iraq will eventually result in contracts with a diverse group of U.S. companies, including those in building and highway construction, water, electricity, health, transportation, farming, and food. But the oil industry stands to benefit most.

With 112 billion proven barrels, Iraq has more known oil reserves than any other country in the world, aside from Saudi Arabia. Plus, 90% of the war-torn country has not yet been explored for oil. The oil belongs to the Iraqis, as Bush states, but U.S. companies are likely to be awarded contracts to make the industry "go" again.


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