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Monday, March 12, 2007

Movin' On Up

One of Corporate America's most esteemed paragons of virtue and excellence is packing up for -- where else? -- Dubai:

HOUSTON, March 11 — Halliburton, the big energy services company, said on Sunday that it would open a corporate headquarters in the United Arab Emirates city of Dubai and move its chairman and chief executive, David J. Lesar, there.

The company will maintain its existing corporate office here as well as its legal incorporation in the United States, meaning that it will still be subject to domestic laws and regulations.

Although the announcement of the new Dubai arrangement took many by surprise, Halliburton said that the move was part of a strategy announced in mid-2006 to concentrate its efforts in the Middle East and surrounding areas, where state-owned oil companies represent a growing source of business.

....

The Dubai announcement, which Halliburton made at a regional energy conference in Bahrain, comes at a time when the company is being investigated by the Justice Department and the Securities and Exchange Commission over allegations of improper dealings in Iraq, Kuwait and Nigeria. Halliburton has also agreed to pay billions of dollars in settlements in asbestos litigation.

Halliburton would not elaborate on Sunday on what the shift of its top executive might mean for some of the issues it faces. The move seemed to raise questions about whether Halliburton might gain tax advantages or other benefits.

....

Despite its recent problems, Halliburton posted record revenue, net income and margins last year.


Yeah, they really took it in the shorts on all those no-bid contracts, didn't they? But I'll wager that at the end of the day, this is not just about oil or profit margins, or even tax advantages. It's about oversight, and staking your claim in this century's Wild West is a great way to avoid the snoops in the SEC, or at least make them work harder.

It's a pretty sweet racket they got going there.

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