Iraq doubled its oil exports in the week ending on 5 October
from the previous week’s total of nine million barrels. Averaging 2.57
million barrels per day, the exports amounted to 18 million barrels. There
were 12 loadings at the two authorized loading terminals of Mina al-Bakr and
Ceyhan, seven of which were from the former, with 12 million barrels of oil,
and five from the latter, with six million barrels. The revenue generated from
the week’s exports, under the United Nations oil-for-food programme, was an
estimated €357 million (euros) or $328 million, at current prices and rate
of exchange. The average price of Iraqi crude oil during the week was
approximately €19.85 or $18.20 per barrel.
In current phase X, which runs from 4 July to 30 November
2001, some 180.5 million barrels of oil have been lifted so far, raising an
estimated €3.9 billion or $3.6 billion in revenue. The United Nations oil
overseers have approved 130 oil purchase contracts for this phase, including
two new contracts during this week. These contracts cover 362 million barrels
of oil, 221 million of which are for Basrah Light and 141 million for Kirkuk
crude.
Since the beginning of the programme on 10 December 1996,
Iraq has exported 2.68 billion barrels of oil for some $38.6 billion and
€10.6
billion ($9.3 billion) in estimated revenue. 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 Security
Council’s 661 sanctions 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.
Throughout the programme, over $28.7 billion worth of
humanitarian supply contracts, including $2.3 billion worth of contracts for
oil industry spare parts and equipment, have been both approved by the 661
Committee and “fast-tracked” by the Office of the Iraq Programme (OIP). So
far, over $15.1 billion worth of humanitarian supplies and $922 million worth
of oil industry spare parts and equipment have been delivered to Iraq, while
another $11.3 billion worth of humanitarian supplies and $1.4 billion worth of
oil spare parts and equipment are in the production and delivery pipeline.
The value of contracts placed on hold by the 661 Committee
remained almost constant at $3.9 billion. During the week, the Committee
released from hold 36 contracts, worth $58.1 million, and placed on hold 30
new contracts, worth $63 million. A total of 1,456 contracts were on hold,
including 999 for humanitarian supplies, worth almost $3.4 billion, and 457
contracts for industry spare parts and equipment, worth $522 million.
As at 4 October, about $1.5 billion and €769 million in
unused funds were available in the United Nations escrow account for the
issuance of additional letters of credit fr the purchase of humanitarian
supplies and oil spare parts and equipment by the Government of Iraq.
