Halliburton’s Contract May Exceed Estimates

Halliburton Co.’s no-bid contract to revive Iraq’s oil industry may last longer than originally estimated, the Army has acknowledged, and the contract’s cost to the government has more than doubled in the last month.

The U.S. Army Corps of Engineers this week backed off a projection that a fully competitive replacement contract would be awarded by August.

There will be no second contract if the oil restoration mission is finished before another firm can take over, or if the Iraqis make their own arrangements for the services, the corps said.

As the Army delays its decision, the government cost of the noncompetitive work awarded to Vice President Dick Cheney’s former company is ballooning. The total last week was $184.7 million, up from $76.7 million a month ago, according to Army figures.