After losing out on Iraq deal Fluor picks up veteran lobbyist. (Up Front).

Fluor Corp., which lost out to arch rival Bechtel Group Inc. for the $680 million master contract to reconstruct Iraq's roads, sewers and other basics, has hired a Beltway insider to get a piece of the oil action.

The latest move involves David Marventano, former staff director of the House's Energy & Commerce committee, being named Fluor's senior vice president of government affairs. Fluor' s former top lobbyist, Michael French, now works for Marventano.

"We're taking a more holistic view of government, getting people who truly understand government and have worked in government before," said John Hopkins, group executive for corporate development and strategy at Fluor.

The Aliso Viejo-based engineering and construction firm faces challenges not only from San Francisco-based Bechtel but also from Houston-based Hallihurton Co. as well. Halliburton already received an oil deal in Iraq.

Both companies are politically connected -- Bechtel, through former Secretary of State George Schultz and others, and Halliburton, through Vice President Dick Cheney, who had been chief executive at the company.

But Fluor has a key tie-in of its own: Philip Carroll, head of the government's advisory committee for Iraq's oil industry. Carroll was Fluor's chief executive from 1998 to early 2002 and predecessor to current Fluor Chief Executive Alan Boeckmann.

So far, Carroll has treaded cautiously, likely because of controversies over the Bechtel and Halliburton deals.

"We have not had any contact with Phil," Hopkins said. "He's been trying to keep at arm's length, as much as possible, with ourselves and other companies. There's been no direct contact."

Situation 'very fluid'

Fluor had a recent setback when the Army Corps of Engineers confirmed that Halliburton's initial Iraqi oil contract -- awarded without bidding and amid criticism because of the Cheney connection -- could last longer than expected.

Initial restoration work might be done by August, or the Iraqis could take over the operation and bid out work. And there still is the possibility that the Army Corps of Engineers could start asking for contract bids in July or August, according to Hopkins.

"The situation in Iraq is very fluid," Hopkins said. "Every time we read the news something comes out different. In the longer term, I'm convinced Fluor will have a role. The scope of what needs to be done in the country is significant, not just as it relates to war but as it relates to years of neglect."

The remaining oil and gas work in Iraq could be worth as much as $5 billion.

"What we're trying to do right now is position ourselves and stay as visible as possible," Hopkins said. "All we can do is stay in position and let people recognize the resource base we have, especially in the region."

He noted, though, that government lobbying is playing a minimal role for Iraq work.

"With lobbying you don't even know who you go see at this point," he said. "I don't think lobbying is going to get any contracts at this point -- it's going to be open competition."

The company is throwing a lot of weight behind its alliance with Britain's AMEC Plc as it vies for Iraqi oil work.

Fluor controls 51 percent of the venture -- to stay within federal procurement guidelines, Hopkins said.

"I think Fluor and AMEC will make an extremely competitive proposal," said Rep. Christopher Cox, R-Newport Beach. "It's hard to imagine a coordinated U.S.-British effort to be any stronger in bidding. There is strong sentiment in favor of those who supported the U.S. effort. That would be a tiebreaker if things were close."

But things could be close, and Halliburton has a key partner, too. Earlier this month, its Kellogg Brown & Root unit teamed with Poland's state oil company, Nafta Polska, for potential Iraq work. Along with Britain and Spain, Poland was a key European ally in the Iraq war.

The controversy over Halliburton's uncontested win of the initial Iraqi oil work could help Fluor if there is pressure to spread out the rebuilding work to more players.

Hopkins said Fluor has no qualms about Halliburton winning the initial oil work in Iraq. "It's the ongoing work --as it relates to future work -- that we're hoping will be open to fair competition," he said. Hopkins said Fluor "got in kind of late in the game" for bidding on the overall Iraq rebuilding deal awarded to Bechtel by USAID.