6 May 2005
Former Iraqi oil minister Ibrahim Bahr al-Uloum is set to make a comeback as the next oil minister, barring any last-minute hitches, after beating Ahmad Chalabi, the deputy prime minister and acting oil minister, as the candidate backed by a Shiite party.
The Shiite Al-Fadhila Party, considered close to radical cleric Moqtada al-Sadr, was allocated the oil job in the ethnic carve-up of portfolios in Iraq’s new Cabinet, which was sworn in this week.
“Ibrahim Bahr al-Uloum is the next oil minister. It has been decided and an announcement is expected any time,” a senior Iraqi oil official told International Oil Daily from Baghdad Thursday.
Bahr al-Uloum served in a provisional government that took power in September 2003 until an interim government was picked in June 2004 to prepare for elections. He was then replaced by oil ministry veteran Thamer al-Ghadban. Al-Ghadban was elected in January as a member of the National Assembly, which is supposed to draft a constitution by August. A new poll is supposed to take place in December, which should see a permanent government established to replace the current transitional one.
During protracted negotiations among political and ethnic factions that won seats in the Jan. 30 elections, the oil ministry was assigned to Al-Fadhila Party. However, Al-Fadhila’s candidate for the post of oil minister, Karim Hattab, was rejected on the ground that he lacked enough credentials. Hattab is an engineer who has been director of the Missan oil fields in southeastern Iraq in recent years.
While Chalabi was named acting oil minister until the oil job could be filled, along with several other vacant cabinet posts, he and Bahr al-Uloum have been competing to win support from Al-Fadhila, which could not come up with an alternative candidate from within its own ranks.
Unlike other ministries, where new ministers took over this week, there was no handover at the oil ministry, although Chalabi did pay a courtesy visit to al-Ghadban this week, Iraqi sources tell International Oil Daily. During the short meeting, it was agreed that unless a permanent minister were named, Chalabi would take over the portfolio next week.
The handover procedure between al-Ghadban and Bahr al-Uloum should take place once the latter is sworn in, which is expected to take place after agreement is reached on the other vacant portfolios, including defense and electricity.
While Chalabi’s acting role as oil minister drew criticism — especially in the US, where he was a Pentagon favorite before falling out of favor over allegations that he spied for Iran — Bahr al-Uloum’s appointment is unlikely to draw fire from any circles, except those who criticize his previous tenure at the oil ministry as lackluster.
Bahr al-Uloum’s new term at the oil ministry is expected to be even more challenging. Iraq’s oil production, exports, pipelines and refineries have all been hit badly in the past year, as insurgents launched a persistent campaign against the interim government’s primary source of revenue. Oil production is down to 1.9 million-2 million barrels per day, while exports are averaging 1.5 million-1.6 million b/d. The export pipeline to the Mediterranean port of Ceyhan in Turkey has been shut since December, and had only exported a trickle of crude since summer 2004, amid intense sabotage.
Although repairs have been undertaken, Iraqi officials decided not to risk reopening the pipeline until full security could be ensured. More recently, it was decided to leave the decision to restart pumping to the new government.
Although no changes are expected to follow at the oil ministry technocrat level, some are expected to take place involving deputy ministers and the head of the State Oil Marketing Organization (Somo). With the distribution of portfolios in the new Cabinet along ethnic lines now in place, the positions of deputy ministers are seen following suit. Certain deals among political and ethnic factions have become an integrated part of the system.
“If Al-Fadhila picked Ibrahim Bahr al-Uloum, he will definitely owe them some posts,” one Iraqi observer said.
Former Oil Minister al-Ghadban had three deputies from the major ethnic groups: one Shiite, one Sunni and one Kurd. The director general of Somo, Dhia al-Bakaa, is an ally of al-Ghadban, and replaced Shamkhi Faraj, who had been by Bahr al-Uloum in 2003.
By Ruba Husari, London
(Published in International Oil Daily May 6, 2005)