Nigeria placed an embargo Monday on awarding government contracts to the US oil service company Halliburton's subsidiary in the country, accusing the firm of negligence in security and safety matters.
"The federal government has decided to place an embargo on the patronage of Halliburton Energy Services Nigeria Limited (HENSL) arising from its negligent conduct which led to the loss of two ionising radioactive sources from Nigeria in 2002," an official statement said here.
In 2002, radiation emitting devices used by the subsidiary of the industry services company to make measurements at oil wells in Nigeria's south-eastern oil-rich Delta region were reported to have gone missing, eventually to be traced to Germany. Halliburton was at the time accused of failing to help Nigeria recover the equipment.
"Additionally, the company, among other infractions, has refused to co-operate with government authorities in ensuring the return of the sources to Nigeria and the ultimate resolution of the issue," it said.
It said the ban has been approved by President Olusegun Obasanjo, adding that all contracts to the company by any ministry, parastatal, or agency of government will stop until further directive on the matter.
Halliburton operates actively in both Nigeria's oil and nautural gas sectors.
Its affiliate TSKJ is into a series of agency agreements in connection with the Nigerian Bonny Island project - a natural gas liquefied plant.
TSKJ is a private limited liability company registered in Madeira, Portugal comprising Technip of France, Snamprogetti Netherlands, an affiliate of the Italian group ENI, JGC Corporation of Japan, and Kellogg Brown and Root, which was acquired by Halliburton in 1998.
The company is currently under investigation in the United States for allegedly considering bribing Nigerian officials to win the lucrative natural gas project some 10 years ago.
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