US oilfield services company Halliburton will pull out of Iran after its current contracts there are wound down, its chief executive said today, citing a poor business climate in the country.
"The business environment currently in Iran is not conducive to our overall strategy and objectives. As a result, we have decided to exit Iran and wind down our operations there while fulfilling our existing contracts and commitments," CEO Mr Dave Lesar said on a conference call with investors.
The Houston-based company, formerly headed by Vice President Mr Dick Cheney, has also been criticised for its work for the Pentagon in Iraq, where it is the largest private contractor with revenues totaling more than $10 billion.
The company is under investigation by the US Justice Department for possible overcharges for fuel and food services connected to its Iraq contracts.
Halliburton said in July it had received a subpoena seeking information about operations in Iran of its Cayman Islands-based Halliburton Products & Services Ltd. unit.
Hallibuton has argued that using a Cayman Islands subsidiary exempts it from a trade embargo against Iran imposed by Washington, which accuses Tehran of seeking nuclear arms and funding terror networks.
Halliburton generated about $80 million in revenues in Iran in 2003.
An offshore subsidiary of Halliburton earlier this month won a contract to develop Iran's huge South Pars gas field, which sits on the world's biggest reservoir of gas.
That report stoked criticism of the company in the United States, as well as among Iran's conservative newspapers.
Mr Lesar said the pullback from Iran was temporary, and if US laws or the business climate changed, Halliburton would return to the Islamic Republic.
Halliburton provided no details on when its current contracts in Iran would be completed or on the value of the work. Mr Lesar also said several of its competitors were active in Iraq, but have not been demonized like Halliburton. "It is inexplicable why these activities have not drawn equal attention, but once again it points out the political nature of the attacks on Halliburton," he said.