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New tankers bought by KBR for Iraq

Nov 1, 2003 12:00 PM

Approximately 200 new tank trailers have been purchased by Halliburton subsidiary Kellogg, Brown & Root for petroleum hauling in Iraq, according to industry sources. About half of the order reportedly has been completed and put into service.

A manufacturer in Saudi Arabia reportedly is building 100 of the trailers. The other half of the order was split up between five builders in Kuwait.

If built to typical specifications for the region, the single-compartment, carbon steel tanks probably have a 7,500-gallon capacity. They are configured for loading and unloading from either side. Tank hardware packages were sourced through Europe from Alfons Haar Maschinenbau GmbH and Emco Wheaton.

A recent check of KBR's web site (Halliburton.com) shows that the government contractor is hiring logistics coordinators, petroleum terminal managers, transportation managers, dispatchers, and tank truck drivers for the Iraq operations.

Halliburton/KBR did not respond to Modern Bulk Transporter requests for an interview.

KBR slammed on fuel contracts

Halliburton subsidiary Kellogg, Brown & Root (KBR) has been accused of overbilling US taxpayers for gasoline imported into Iraq, according to news reports. The charges came from Rep Henry Waxman (D-CA), who is among those calling for a Congressional investigation of the Iraq contracts that went to Halliburton.

Gasoline imports by KBR are part of a larger contract with the US Corps of Engineers to rebuild Iraq's oil sector. As of late September, Halliburton/KBR had been paid $300 million to import about 190 million gallons of gasoline into Iraq.

Halliburton/KBR reportedly charged an average price of $1.59 per gallon, excluding the company's fee of 2% to 7%. In contrast, the Iraqi national oil company reportedly has been paying between 90 and 98 cents for every gallon of gasoline it imports.

Based on an average wholesale price of about 71 cents per gallon in the Middle East at the time, Halliburton/KBR was charging more than 90 cents a gallon to haul the gasoline into Iraq from Kuwait. Rep Waxman said his research showed that a reasonable transportation cost for KBR would have been 10 to 25 cents per gallon, particularly in light of the fact that the US military provides security for each shipment.

Halliburton/KBR did not respond to Modern Bulk Transporter requests for an interview.