LONDON: Senior American and British oil executives are being headhunted by the White House to advise Iraq’s oil industry as part of America’s plans for reconstruction.

The recruitment drive for some of the most senior figures in the western oil industry does not necessarily mean that the Americans are dropping their pledge to ensure the oil industry will be run for and by the Iraqi people. Britain is pressing for a prominent Muslim to be placed in overall charge.

However, the recruitment drive will be seen by some as a sign of the power of the neo-conservatives in the US administration. Many believe the White House is determined, in the short run at least, to appoint American generals, diplomats and now oil men to oversee the country until an Iraqi interim administration with some form of UN involvement is agreed.

Britain recognizes a military administration is necessary, as in Kosovo, but wants Iraqis to take control as soon as possible. One model is the de-Nazification of Germany, handing re-education to the Iraqi people so long as the Ba’ath party has been closed down.

Reports from America suggest that Phillip J Carroll, the former chief executive of Shell Oil, the US operation of the Royal Dutch Shell group, will lead Iraq’s national oil company. Mr Carroll would formally head either the company or an advisory board.

Rodney Chase, the outgoing deputy chief executive of BP, is also named in the reports as being considered as a deputy to run Iraq’s state oil marketing company. BP denied the report, saying that “he has not been approached in any way at all”. One oil industry source said he thought Washington, or the press, were “just plucking names out of the air”.

The Iraqi oil industry was nationalised 20 years ago and has also suffered under the pressure of sanctions for 20 years.

The southern oilfields are already under British and American control with relatively little damage inflicted. But repairs may take as long as three months, according to British sources. The oil flow is needed to help fund the oil for food programme now administered by the UN.

Iraq’s oil production capacity is 2.8 million barrels per day (bpd), but production has been falling. Before 1990 Iraq was producing 3.5 million bpd. Iraq has the second largest oil reserves in the world, estimated at 112 billion barrels. Of 74 discovered oilfields, only 15 have been developed.—Dawn/The Guardian News Service