Source: Global Research.ca, August 5, 2005, Title: “Halliburton Secretly Doing Business With Key Member of Iran’s Nuclear Team,” Author: Jason Leopold
Faculty Evaluator: Catherine Nelson
Student Researchers: Kristine Medeiros and Pla Herr
According to journalist Jason Leopold, sources at former Cheney company Halliburton allege that, as recently as January of 2005, Halliburton sold key components for a nuclear reactor to an Iranian oil development company. Leopold says his Halliburton sources have intimate knowledge of the business dealings of both Halliburton and Oriental Oil Kish, one of Iran’s largest private oil companies.
Additionally, throughout 2004 and 2005, Halliburton worked closely with Cyrus Nasseri, the vice chairman of the board of directors of Iran-based Oriental Oil Kish, to develop oil projects in Iran. Nasseri is also a key member of Iran’s nuclear development team. Nasseri was interrogated by Iranian authorities in late July 2005 for allegedly providing Halliburton with Iran’s nuclear secrets. Iranian government officials charged Nasseri with accepting as much as $1 million in bribes from Halliburton for this information.
Oriental Oil Kish dealings with Halliburton first became public knowledge in January 2005 when the company announced that it had subcontracted parts of the South Pars gas-drilling project to Halliburton Products and Services, a subsidiary of Dallas-based Halliburton that is registered to the Cayman Islands. Following the announcement, Halliburton claimed that the South Pars gas field project in Tehran would be its last project in Iran. According to a BBC report, Halliburton, which took thirty to forty million dollars from its Iranian operations in 2003, “was winding down its work due to a poor business environment.”
However, Halliburton has a long history of doing business in Iran, starting as early as 1995, while Vice President Cheney was chief executive of the company. Leopold quotes a February 2001 report published in the Wall Street Journal, “Halliburton Products and Services Ltd., works behind an unmarked door on the ninth floor of a new north Tehran tower block. A brochure declares that the company was registered in 1975 in the Cayman Islands, is based in the Persian Gulf sheikdom of Dubai and is “non-American.” But like the sign over the receptionist’s head, the brochure bears the company’s name and red emblem, and offers services from Halliburton units around the world.” Moreover mail sent to the company’s offices in Tehran and the Cayman Islands is forwarded directly to its Dallas headquarters.
In an attempt to curtail Halliburton and other U.S. companies from engaging in business dealings with rogue nations such as Libya, Iran, and Syria, an amendment was approved in the Senate on July 26, 2005. The amendment, sponsored by Senator Susan Collins R-Maine, would penalize companies that continue to skirt U.S. law by setting up offshore subsidiaries as a way to legally conduct and avoid U.S. sanctions under the International Emergency Economic Powers Act (IEEPA).
A letter, drafted by trade groups representing corporate executives, vehemently objected to the amendment, saying it would lead to further hatred and perhaps incite terrorist attacks on the U.S. and “greatly strain relations with the United States primary trading partners.” The letter warned that, “Foreign governments view U.S. efforts to dictate their foreign and commercial policy as violations of sovereignty often leading them to adopt retaliatory measures more at odds with U.S. goals.”
Collins supports the legislation, stating, “It prevents U.S. corporations from creating a shell company somewhere else in order to do business with rogue, terror-sponsoring nations such as Syria and Iran. The bottom line is that if a U.S. company is evading sanctions to do business with one of these countries, they are helping to prop up countries that support terrorism—most often aimed against America.