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Last Updated: Tuesday, 9 March, 2004, 07:37 GMT
US hands out new Iraq oil deals
An Iraqi oil worker
The US military has awarded seven new contracts for supplying oil to Iraq, to replace a controversial deal with Vice-President Dick Cheney's former firm.

Halliburton, once led by Mr Cheney, is being probed for allegedly overcharging on oil brought in from Kuwait.

All seven new contracts rely on supplies from Turkey.

Six of the new deals, worth in total $200m, are with Turkish firms, with a seventh - the largest at $108.5m - going to a Texas-based operation.


The need for the new arrangements followed allegations that Halliburton was charging the US three times what the oil had cost Kuwait.

Refinery Associates: $108.5m for petrol and diesel
Turcas Petrol: $59m for petrol and diesel
Opet Petrolcul: $55m for petrol
Petrol Ofisi: $35m for diesel
Delta Petrol Urunleri Ticaret: $18m for LPG
Iprgaz: $17m for LPG
Tefirom: $15.8m for LPG
(All Turkish except Refinery Associates, which is based in Texas. 22 companies bid for the deals.)
An investigation is under way there to see who may have been responsible, as well as a criminal investigation by the Pentagon.

Halliburton has made billions of dollars from other Iraq contracts, many awarded without competitive bidding.

Those deals could now be subject to a detailed examination as well, the firm says.

The Pentagon's Defense Contract Audit Agency has criticised "deficiencies" in construction and engineering work done in Iraq by the firm's Kellogg Brown & Root (KBR) subsidiary.

The audit could result in refunds or other financial penalties, Halliburton said in a regulatory filing.

Among accusations the firm has faced is one of charging the US military for three times too many meals served to troops, while two staff have been dismissed for taking $6m bribes.

Criminal probe into Halliburton
24 Feb 04  |  Business
Kuwait orders Halliburton probe
16 Feb 04  |  Business
Halliburton admits $6m kickbacks
23 Jan 04  |  Business
Pentagon mulls Halliburton probe
15 Jan 04  |  Business
Halliburton's Iraq role expands
07 May 03  |  Business

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