WATCHING WASHINGTON HELPING KUWAIT

With Patrick Crow Rebuilding Kuwait's oil industry is an issue on the minds of Congress and the Bush administration. Last week a couple of congressional hearings examined the chances for small U.S. businesses to work in Kuwait. The U.S. Army Corps of Engineers testified Kuwait is in better shape than anticipated following the Iraqi occupation and sabotage, except for wells set afire.

March 18, 1991

3 min read

Rebuilding Kuwait's oil industry is an issue on the minds of Congress and the Bush administration.

Last week a couple of congressional hearings examined the chances for small U.S. businesses to work in Kuwait.

The U.S. Army Corps of Engineers testified Kuwait is in better shape than anticipated following the Iraqi occupation and sabotage, except for wells set afire.

Kuwait is paying the corps $45 million to direct initial cleanup and restoration operations but has expanded that to $100 million due to the size of the problem. Seven subcontractors are performing the work for the corps.

Also last week, the Export-import Bank established a special program to support U.S. exports to Kuwait.

LOOKING FOR WORK

Meanwhile, the corps, congressional offices, the Commerce Department's Kuwait restoration office, and the Department of Energy have been flooded with inquiries from companies and individuals seeking work in Kuwait.

George Helland, DOE's deputy assistant secretary for energy assistance, said it's been an absolute madhouse.

"It seems everybody and his brother wants to get a piece of the action, to pick up some lucrative business," Helland said. "They are full of ideas to solve Kuwait's problems."

Unfortunately, neither DOE nor Commerce can help much. The Kuwaiti government has not sought their assistance.

Helland said, "The Kuwaitis are in some confusion right now, but they're quite capable. They just need a little help in going from ground zero to being 500 times as active as they were before. Meanwhile, we're trying to weave our way through the really serious questions people have, such as helping the well control companies get some things done."

Helland has headed DOE's export assistance office for 6 months and is experienced in the international service and supply business.

He rose to become executive vice-president of Cameron Iron Works Inc. in 16 years with the firm. In 1977, when he also served as president of the Petroleum Equipment Suppliers Association, he became president of Weatherford International Inc., a service and supply company active overseas. In 1979 he became president of the McEvoy division of Smith International. And since 1985 he has been a consultant, working with 12 manufacturing firms to develop overseas business.

HOUSTON SEMINAR

A key project for Helland's small bureau is to develop a seminar for the oil industry in Houston on Export-Import Bank financing procedures,

The seminar will focus on the $5-6 billion loan guarantee package ExIm and Mexico are negotiating. The bank would guarantee 85% of the loans Pemex would take to acquire U.S. goods and services.

Helland said Exim loan guarantees are a new area for many oil firms, and this deal is different anyway.

"The typical Exim loan guarantees are for equipment, but in this case it would be for developing Mexican oil fields and could involve seismic work, drilling, hardware, or whatever."