6.4  |  Planning and preparation for a post-Saddam Hussein Iraq, mid-2001 to January 2003

855.  BP raised its concerns with Mr Brenton in Washington the same day.415

856.  On 6 November, the FCO hosted a presentation on Iraqi energy given by a team

from BP.416 The presentation spelt out Iraq’s importance to oil companies: it had the

second largest proven oil reserves in the world and “unique ‘yet to find’ potential”, but the

oil industry was “a mess” and had to run fast to stand still.

857.  The record of the seminar was sent to Mr Powell and Sir David Manning as

evidence of why Iraq was so important to BP.417

858.  Mr Powell sent it to Mr Blair, who asked: “but what do we do about it?”418

859.  BP called on Mr Brenton in Washington again on 11 November.419 Sir Christopher

Meyer told Sir David Manning that UK oil companies had been told by the Embassy that

“US motivation as regards Iraq parallels our own: this is a matter of national security, not

oil … Nevertheless, the rumours persist.”

860.  Sir Christopher continued:

“We have seen a report from our team at CENTCOM which suggests that the

Pentagon has already awarded a contract to Kellogg, Brown and Root, a subsidiary

of Haliburton, to restore the Iraqi oil industry to production levels of 3m bpd

[barrels per day]. (Haliburton is of course, the company of which Cheney was

previously chairman). We have so far been unable to obtain collateral for this from

the Administration, and it might well in any case amount to no more than prudent

contingency planning to stabilise Iraqi oil facilities if Saddam attempts to damage

them in a conflict.

“Either way, there is clearly an issue here which we need to tackle. Raising it in an

effective way with the Administration is a delicate matter. My view remains that the

only realistic way in to this is via a PM intervention with Bush … The points to make

would be:

• Once Saddam has been disarmed … Iraq’s oil industry will be central to …

economic recovery.

• We, as you, have energy majors who have skills and resources to help …

• To give the lie to suggestions that this campaign is all about oil, it is vitally

important that, once sanctions are lifted, there is seen to be a level playing field

for all companies to work in Iraq.”

415  Telegram 1418 Washington to FCO London, 31 October 2002, ‘BP & Iraqi Oil’.

416  Minute Economic Policy Department [junior official] to Arthur, 13 November 2002, ‘BP/Iraqi Energy’.

417  Manuscript comment Rycroft, 18 November 2002, on Minute Economic Policy Department [junior

official] to Arthur, 13 November 2002, ‘BP/Iraqi Energy’.

418  Manuscript comment Blair on Minute Economic Policy Department [junior official] to Arthur,

13 November 2002, ‘BP/Iraqi Energy’.

419  Letter Meyer to Manning, 15 November 2002, ‘Iraqi Oil’.

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