Halliburton Could Reach Size of European Country

Controversial U.S. oil giant Halliburton has begun talks to buy rival Baker Hughes, the latter company announced Thursday.

According to a statement released by Baker Hughes, they have “engaged in preliminary discussions with Halliburton Company regarding a potential business combination transaction,” Reuters reported.

The Wall Street Journal has estimated the deal is likely to be worth a least US$22 billion. The company that would emerge from the merger would be an oil giant worth close to US$67 billion – a little more than the entire GDP of Lithuania.

Halliburton has declined to give details of the talks, telling Fortune magazine it “does not comment on potential merger and acquisition plans.”

Halliburton has been at the center of numerous controversies, ranging from its role in the Iraq War to the Deepwater Horizon spill.

When Washington led an invasion of Iraq in 2003, one of the staunchest advocates for war was then-U.S vice president Dick Cheney – a former Halliburton CEO.

In the lead up to the war, Halliburton was awarded a no-bid services contract worth billions of dollars.

Halliburton at the time was the parent company of engineering and construction firm KBR, which by 2013 had become the top profiteer from the U.S.-led invasion and occupation of Iraq.

According to the International Business Times, KBR secured US$39.5 billion in Iraq-related contacts since the war began.

In 2013, Halliburton pleaded guilty to destroying evidence in the Deepwater Horizon spill wanted by BP.