Halliburton 2011 Annual Report Download - page 27

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12
Our operations are subject to political and economic instability and risk of government actions
that could have a material adverse effect on our consolidated results of operations and consolidated
financial condition.
We are exposed to risks inherent in doing business in each of the countries in which we operate.
Our operations are subject to various risks unique to each country that could have a material adverse effect
on our consolidated results of operations and consolidated financial condition. With respect to any
particular country, these risks may include:
- political and economic instability, including:
• civil unrest, acts of terrorism, force majeure, war, or other armed conflict;
• inflation; and
• currency fluctuations, devaluations, and conversion restrictions; and
- governmental actions that may:
• result in expropriation and nationalization of our assets in that country;
• result in confiscatory taxation or other adverse tax policies;
• limit or disrupt markets, restrict payments, or limit the movement of funds;
• result in the deprivation of contract rights; and
• result in the inability to obtain or retain licenses required for operation.
For example, due to the unsettled political conditions in many oil-producing countries, our
operations, revenue, and profits are subject to the adverse consequences of war, the effects of terrorism,
civil unrest, strikes, currency controls, and governmental actions. These and other risks described above
could result in the loss of our personnel or assets, cause us to evacuate our personnel from certain countries,
cause us to increase spending on security worldwide, disrupt financial and commercial markets, including
the supply of and pricing for oil and natural gas, and generate greater political and economic instability in
some of the geographic areas in which we operate. Areas where we operate that have significant risk
include, but are not limited to: the Middle East, North Africa, Azerbaijan, Colombia, Indonesia,
Kazakhstan, Mexico, Nigeria, Russia, and Venezuela. In addition, any possible reprisals as a consequence
of military or other action, such as acts of terrorism in the United States or elsewhere, could have a material
adverse effect on our business and consolidated results of operations.