At the average rate of 2.1 million barrels per day, Iraq
exported 14.7 million barrels of oil in the week ending 12 October, a drop
from the previous week’s high of 18 million barrels. There were five
loadings each at the two authorized loading terminals of Mina al-Bakr and
Ceyhan, with 8.7 million barrels of oil from the former, and six million
barrels from the latter. The week’s exports generated another €292 million
(euros) or $266 million in estimated revenue, at current prices and rate of
exchange, bringing the total estimated revenue earned in current phase X of
the programme to €4.2 billion or $3.8 billion. The average price of Iraqi
crude oil during the week was approximately €19.90 or $18.15 per barrel.
The United Nations oil overseers have approved 131 oil
purchase contracts for this phase, including one new contract during the week
in review. The volume of oil covered by these contracts amounts to 364 million
barrels, 221 million of which are for Basrah Light and 143 million for Kirkuk
crude. So far into phase X, Iraqi oil exports have totaled 195.2 million
barrels. Phase X runs from 4 July to 30 November 2001.
Iraq has raised some $38.6 billion and
€10.9
billion ($9.5 billion) in estimated revenue since the
beginning of the oil-for-food programme on 10 December 1996 from the export of
almost 2.7 billion barrels of oil. 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.
Also since the start of the programme, about $28.8 billion
worth of humanitarian supply contracts, including $2.4 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). Of this total, over $15.3 billion worth of humanitarian
supplies and $931 million worth of oil industry spare parts and equipment have
been delivered to Iraq, while another $11.1 billion worth of humanitarian
supplies and $1.5 billion worth of oil spare parts and equipment are in the
production and delivery pipeline.
The steady decline in the value of contracts placed on hold
by the 661 Committee continued, standing at $3.85 billion at the end of the
week, down from the previous week’s total of $3.9 billion. In all, 1,479
contracts were on hold, including 1,010 for humanitarian supplies, worth $3.35
billion, and 469 contracts for industry spare parts and equipment, worth $490
million. During the week, the Committee released from hold 11 contracts, worth
$62.3 million, and placed on hold 37 new contracts, worth $47.3 million. The
drop in the total value of “holds” was mainly the result of the release of
a single high-value contract in the oil industry sector, worth $52 million.
As at 12 October, almost $1.5 billion and €830 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.
