Iraq’s
suspension of its oil exports under the United Nations oil-for-food programme
continues into the 12th day. The
Security Council’s sanctions committee, on the advice of the United Nations
oil overseers, on 8 December approved the pricing mechanism for the sale of
Iraqi oil for the month of December. The
Iraqi State Oil Marketing Organization (SOMO) had submitted a revised December
pricing mechanism on 7 December.
Also,
yesterday, 11 December, the Memorandum of Understanding (MOU) of May 1996 was
formally extended between the United Nations Secretariat and the Government of
Iraq for an additional 180 days.
The extension covers the current phase IX, which came into effect on 6
December.
Iraq has not given an explanation for the continuing suspension of its
oil exports.
There
are 56 approved contracts for almost 77 million barrels of oil under phase
VIII that remain pending.
The validity of these contracts is being extended on a case-by-case
basis by the oil overseers on the request of SOMO and the buyers.
Of
the 375.7 million barrels of oil exported under phase VIII, 40 per cent were
destined for the European, about 41 per cent for the United States and 19 per
cent for the Far East markets.
During
the week to 8 December, the Committee approved 67 contracts for the purchase
of humanitarian supplies and 13 contracts for oil industry spare parts and
equipment.
Another 52 humanitarian
and one oil spare parts contracts were processed by the Office of the
Iraq Programme (OIP) under the “fast track” procedures based on
pre-approved lists.
In
phases IV to VIII, the Committee has now approved over $9.5 billion worth of
contracts for humanitarian supplies, while additional $2.9 billion worth have
been processed by OIP under the "fast track" procedures.
The Committee has also approved 2,326 contracts worth over $1.2 billion
for the purchase of oil industry spare parts and equipment. Another 76
contracts worth over $53 million have been approved under the "fast
track" procedures by OIP.
The
largest single value contract worth $123.4 million under phase VI was released
from hold by the Committee on 5 December.
The contract for the purchase of equipment in the electricity sector
was cleared once several items on the “1051 list” were removed and the
material composition of a few others was changed.
However, the total value of contracts placed on hold by the Committee
as at 8 December remained at over $2.5 billion ($2.2 billion for humanitarian
supplies and $333 million for oil industry spare parts and equipment).
