Thursday, March 01, 2007
Halliburton expects extension on LOGCAP contract
Business
(Reuters) Halliburton Co., whose KBR unit is the largest private contractor in Iraq, said on Wednesday it expected the U.S. Department of Defense would announce awards for new Iraq contracts in the second quarter, later than the company expected. The Houston company, which will complete its split off of the engineering and construction business KBR in the coming months, said last month it expected the Pentagon would announce the LogCAP IV contracts by the end of the first quarter.
KBR has so far booked more than $20 billion in revenues from its work in Iraq and has been the target of several investigations into the company's billing practices. It has also faced complaints from some U.S. lawmakers about the company's close ties to the Bush administration. Vice President Dick Cheney formerly served as Halliburton's CEO before taking up his current office.
In its annual 10-K filing to the Securities and Exchange Commission, Halliburton said its awards under a new LogCAP contract would reduce its revenues from the Pentagon."We expect our overall volume of work to decline as our customer scales back the amount of services we provide. However, as a result of the recently announced surge of additional troops in Iraq, we expect the decline to occur more slowly than previously expected," Halliburton said in the filing. The LogCAP contract includes logistical services for U.S. troops stationed in Iraq, including transportation, laundry, entertainment and dining services. KBR had also previously held contracts to help rebuild Iraq's damaged oil producing infrastructure.
Labels: contracts, Halliburton, KBR, LogCAP, U.S. Department of Defense
