US government contracts for Iraqi reconstruction given to oil giant Halliburton Co are now worth some US$2 billion and could go higher, the US Army said Friday.
The deals, awarded to the firm once headed by US Vice President Dick Cheney, have been sharply criticized by some members of the US Congress, especially because some were decided without competitive bids.
The contract to Halliburton unit Kellogg Brown and Root (KBR) to rehabilitate Iraqi oil fields has been revised upward to US$948 million, army spokesman Dan Carlson said.
A separate 10-year army field support contract to Halliburton awarded in 2001 has been boosted to US$1 billion, the spokesman added.
However the spokesman added that the figure could rise when final figures for fuel costs such as diesel, benzene and liquefied petroleum gas are made. The company is importing these products to meet Iraqi demand until the country's oil industry can be restarted.
"The total amount needed is directly tied to how quickly Iraq can restart the oil system production and level storage supplies throughout Iraq," the army spokesman said.
Payments made to Halliburton so far have totaled US$247 million.
Company spokeswoman Wendy Hall defended the contract for oil as part of an interim plan to get Iraq's oil industry in shape.
"This contract will still be used for an interim period, until the US Army Corps of Engineers procures additional contracts to provide a broad range of services required to support the execution plan," Hall said.
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