Halliburton flees Iran

Halliburton winds up Iran work

Mon Apr 9, 5:45 PM ET

US oil services giant Halliburton said Monday it had wrapped up its work commitments in Iran and was no longer conducting any projects in the Islamic republic.

Halliburton announced in January of 2005 that it was shutting-down its Iran operations, but would honor existing "contractual commitments" until they were fulfilled. Its activities in Iran were managed by non-US staffers.

"Halliburton announced today that all of its contractual commitments in Iran have been completed and the company is no longer working in Iran," the firm said in a brief statement.

The company, headed by Dick Cheney from 1995 to 2000 before he became vice president, added that its "prior business" in Iran was "clearly permissible under applicable laws and regulations."

Halliburton was involved in at least one contract to drill for gas in Iran in 2005 although the contract was subsequently cancelled by Iran's government.

It had won the contract even though a US law, dating to 1996, threatens sanctions on US and foreign groups that invest over 40 million dollars in Iran's energy sector.

Halliburton carried out between 30 and 40 million dollars worth of oilfield service work in Iran, according to the firm, which has said its operations in the country were "miniscule."

The company might be pulling out of Iran, which has troubled political relations with the United States, but it is boosting its footprint elsewhere in the region.

Halliburton said last month that it was relocating to the United Arab Emirates to capitalize on the Gulf region's booming energy market.