DUBAI, April 19: Washington is seeking an Iraqi chief executive officer (CEO) to head a multinational board of up to 16 to kickstart post-war Iraqi oil operations, industry sources said on Saturday.
The structure for initial governance of Iraqi oil is now taking shape after weeks of uncertainty, the sources said.
“Washington wants to get moving on oil,” said one industry expert familiar with the plans. “And they are determined to place an Iraqi as CEO of oil.”
“The majority will definitely be Iraqis,” said another.
The group will oversee all operations at Iraq’s oil ministry, from the rehabilitation of production facilities, to export contracts and refining for domestic fuel needs.
The make up of the board should alleviate fears that US nationals might dominate although Phillip Carroll, the former head of Royal Dutch/Shell in the United States, is earmarked for what would be effectively a chairman’s role.
The identity of the CEO is not yet known but expatriate Iraqi oil official Muhammed-Ali Zainy is taking a position, probably alongside another seven Iraqis — including three other exiles and four officials from the government of Saddam Hussein.
Inclusion of existing officials appears designed to meet the approval of the 55,000 oil workers who must be mobilized to get Baghdad’s only significant export revenues flowing again.
“The Iraqi part of the team is already complete,” said an oil industry executive.
“Their job is to reactivate the ministry of oil and its attached companies and bring them to a functional level.”
Joining Carroll, another four to six Americans and non-US nationals in total will make up the remainder of the team, although their identities also are not known yet.
The multinational element of the non-Iraqi part of the board also appears to be aimed at deflecting criticism of US dominance over Iraqi oil affairs.
At least part of the board is expected to travel to Baghdad soon and liaise with oil ministry officials.
“The assignment of the advisory oil team, as well as other teams, is temporary,” said an oil industry analyst. “The goal is for them to hand over functioning ministries and agencies to the Iraqi Interim Authority.”
Iraq’s oil infrastructure emerged with little damage from the three-week US war and the US military has started work on restoring production.
Initial volumes should be ready soon but the resumption of exports depends on the creation of a legal framework at the United Nations to carry out oil sales.—Reuters
