The volume of Iraqi oil exports under the United Nations
oil-for-food programme dropped sharply from the previous week’s high of 16.4
million barrels to a mere 9 million barrels in the week ending on 28 September
2001. Of the total eight loadings, three were from Mina al-Bakr terminal, with
four million barrels of oil, and five from Ceyhan terminal, with five million
barrels. An estimated €185 million (euros) or $170 million in revenue was
generated from the week’s exports, at current prices and rate of exchange,
bringing the total estimated revenue in current phase X to over €3.6 billion
or $3.3 billion. The average price of Iraqi crude oil during the week was
approximately €20.55 or $18.90 per barrel.
The Security Council’s 661 Sanctions Committee has now
approved the pricing mechanisms for Iraqi crude oil deliveries to the United
States market during September.
Since the start of phase X on 4 July, some 162.5 million
barrels of oil have been lifted. The phase ends on 30 November 2001. The
United Nations oil overseers have approved 128 oil purchase contracts for this
phase, including one new contract during this week. The approved contracts are
for 356 million barrels of oil, 217 million of which are for Basrah Light and
139 million for Kirkuk crude.
Some $38.6 billion and €10.3
billion ($8.9 billion) in estimated revenue has been raised from the sale of
over 2.66 billion barrels of oil since the beginning of
the programme on 10 December 1996. The United States dollar was
replaced with the euro for Iraqi oil purchases in early November 2000, at the
request of the Government of Iraq and with the consent of the 661 Committee.
With the adoption of Security Council resolution 1330 (2000) on 5 December
2000, 72 per cent of the oil proceeds fund the humanitarian programme in Iraq,
59 per cent of which is for the 15 central and southern governorates and 13
per cent for the three northern governorates.
The value of humanitarian supply contracts, both approved by
the 661 Committee and “fast-tracked” by the Office of the Iraq Programme (OIP),
has reached $28.6 billion, including $2.3 billion worth of contracts for oil
industry spare parts and equipment. So far, over $14.9 billion worth of
humanitarian supplies and $911 million worth of oil industry spare parts and
equipment have been delivered to Iraq, while another $11.4 billion worth of
humanitarian supplies and $1.4 billion worth of oil spare parts and equipment
are in the production and delivery pipeline.
There was a further slight decrease in the value of
contracts placed on hold by the 661 Committee, which at the end of the week
stood at $3.9 billion. During the week, the Committee released from hold 80
contracts, worth $176.4 million, and placed on hold 40 new contracts, worth
$83.3 million. In all, 1,465 contracts were on hold, comprising 1,009 for
humanitarian supplies, worth almost $3.4 billion, and 456 contracts for
industry spare parts and equipment, worth $517 million.
As at 28 September, about $1.3 billion and €862 million in
unused funds were available in the United Nations escrow account for the
issuance of additional letters of credit for the purchase of humanitarian
supplies and oil spare parts and equipment by the Government of Iraq.