In a surprising move, energy services company Halliburton announced that it was moving its corporate headquarters and CEO David Lesar, to Dubai.
The company will retain its existing corporate office and legal incorporation in the United States. Thus it still will be subject to US laws and regulations.
According to Halliburton, the move is a part of its strategy to expand presence in the Eastern Hemisphere.
The company has assured that its 1200 employees in Dallas would not see any layoffs.
Halliburton was headed by Vice President Dick Cheney from 1995 to 2000. Just after the Iraq war started, Halliburton had been awarded a no bid contract for providing services to US troops in Iraq. Cheney is said to have played a big part in pushing Halliburton's case.
Halliburton is in business of oil services (like oil well drilling and maintenance) and military contracting. It will soon be spinning off KBR, its military contracting unit to focus better on its oil services business. It had reported a record profit of $2.3 billion last year.
The move has not gone down well with many US politicians. According to democrat Patrick Leahy, "This is an insult to the U.S. soldiers and taxpayers who paid the tab for their no-bid contracts and endured their overcharges for all these years."
In the past Halliburton has been accused of mishandling of housing, food and fuel contracts worth billions of dollars . Halliburton also had faced an asbestos lawsuit, which was later settled for $5 billion. Many see this shift as an attempt by the company to evade US taxes.
