Halliburton, one of the world’s largest energy companies, has been hit by a cyberattack. The company has shut down some of its internal systems in response to the incident.
According to a brief statement filed with government regulators on Thursday, Halliburton became aware of unauthorized access to its systems on Wednesday and responded by "proactively taking certain systems offline." The company said it is "working to identify any effects of the incident."
Halliburton has close to 48,000 employees in dozens of countries, making it one of the largest energy companies in the world. The U.S. energy giant is widely associated with the massive oil spill caused by the Deepwater Horizon oil rig explosion in the Gulf of Mexico in 2010, in which Halliburton later agreed to settle with the U.S. government for $1.1 billion.
Background on the Cyberattack
Reuters was the first to report the cyberattack on Wednesday. The Department of Energy (DOE) spokesperson Jeremy Ortiz stated that "there are no indications that the incident is impacting energy services at this time and DOE is coordinating with interagency partners."
It’s not uncommon for companies to shut down their systems following a cyberattack, with the goal of preventing the intruders from having continued access to breached systems or gaining access to others. Several companies have taken similar actions in recent months.
Halliburton’s Response
Halliburton spokesperson Victoria Ingalls declined to comment beyond the company’s filing when asked by TechCrunch. When questioned about the nature of the security incident or whether the company has received any communication from the intruders, Ingalls said "any subsequent communications will be in the form of an 8-K," referring to public filings.
On Friday, TechCrunch identified a potential security issue that allows anyone to access internal Halliburton systems through its single-sign-on provider. When asked if Halliburton was aware of the issue and whether the company provides means for the public reporting of security flaws, Ingalls declined to answer and reiterated the company’s boilerplate statement.
Ingalls also declined to say which executive oversees responsibility for cybersecurity at Halliburton when asked by TechCrunch.
Halliburton’s Financial Performance
According to Halliburton’s latest full-year earnings release, the company made $23 billion in revenue during 2023, up 13% from the previous year. Halliburton chief executive Jeff Miller made $19 million in total executive compensation during 2023, as shown in the company’s filings.
Implications of the Cyberattack
The implications of the cyberattack on Halliburton are not yet clear. However, it highlights the growing threat of cyberattacks on critical infrastructure and energy companies.
As Zack Whittaker, Security Editor at TechCrunch, noted: "Cyberattacks on critical infrastructure and energy companies can have significant consequences for national security and public safety."
Industry Reaction
The industry has been quick to respond to the news. The U.S. Department of Energy (DOE) is coordinating with interagency partners to address the incident.
"We are working closely with our federal partners to assess the situation and determine the best course of action," said DOE spokesperson Jeremy Ortiz.
Other companies in the energy sector have also weighed in on the incident, expressing concerns about the potential impact on the industry as a whole.
Conclusion
The cyberattack on Halliburton is a stark reminder of the growing threat of cyberattacks on critical infrastructure and energy companies. The company’s decision to shut down internal systems is a proactive measure to prevent further damage.
As the investigation into the incident continues, it remains to be seen how the cyberattack will impact Halliburton’s operations and the industry as a whole.
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