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Halliburton chief steps away from KBR
By Upstream staff
Halliburton chief executive Dave Lesar sought to distance his company from its former unit KBR at the energy services giant's annual general meeting today.
Lesar said: "We no longer speak on behalf of KBR, nor is it appropriate for us to speak on behalf of KBR," in response to a shareholder's question about the engineering company.
Engineering and construction group KBR, which is the Pentagon's largest contractor, became a separate company in April as part of Halliburton's plan to focus on its more profitable oil services business
Over the years, KBR has drawn scrutiny from auditors, congressional Democrats and the US Justice Department for the quality and pricing of its work for the US Army.
Security was tight at the meeting held at a private resort 30 miles (48 kilometres) north of Houston. Protesters, which usually number in the hundreds, were held in a fenced off "free expression" zone. Before the meeting, about 20 demonstrators milled around under the watchful eye of a heavy police detail.
Katie Heim, with the Houston Global Awareness Collective, said the group was there to throw a goodbye party to Halliburton because it is moving its chief executives office to Dubai.
"It's getting a little bit too hard for them to do business in the US," Heim told Reuters, adding that it would be easier for Halliburton to escape criticism and scrutiny in the Middle East.
Halliburton is a frequent target of critics as a result of the work KBR does in Iraq and the company's ties to US Vice President Dick Cheney, who was chief executive from 1995 to 2000.
When the company announced it was moving Lesar to Dubai in March to win more contracts in the Eastern Hemisphere, US politicians accused the company of turning its back on a government that had been the source of much of its business.
Speaking to reporters after the meeting, Lesar said he was leaving at the end of this week to move to Dubai, but that he would remain a US citizen and taxpayer.
"I'm looking forward to it," he said of the move.
Lesar also said he expects his company's relationship with Venezuelan state oil company PDVSA to remain good.
"We are proud of that relationship and we expect it to continue," Lesar told shareholders.
Halliburton has about 1000 employees in Venezuela, where President Hugo Chavez has seized US oil projects in the Orinoco Basin.
Lesar also told reporters after the meeting that he was "certainly more positive" about drilling markets in North America than he was in January and February, but cautioned that Canada would remain a struggle for the industry.
In April, when Halliburton reported its first-quarter results, it said lower-than-expected drilling activity in Canada and the US Rocky Mountains hurt some segments of its business.
In March, the company warned its first-quarter profit would fall below analysts estimates due to decreased drilling activity in North America.
Wednesday, 16 May, 2007, 16:59 GMT | last updated: Wednesday, 16 May, 2007, 16:59 GMT
