(19 - 25 January 2002)
The volume of Iraq’s oil exports under the United Nations
oil-for-food programme rose for the second consecutive week, averaging two
million barrels per day in the week ending 25 January 2002. With nine loadings
in all from the two authorized loadings terminals of Mina al-Bakr and Ceyhan,
the week’s exports totaled 14 million barrels, generating an estimated
€230 million (euros) or $200 million in revenue, at current prices and rate
of exchange. There were five liftings from Mina al-Bakr, with 7.7 million
barrels of oil, and four from Ceyhan, with 6.3 million barrels. The average
price of Iraqi crude oil was approximately €18.60 or $16.40 per barrel.
During the week, the United Nations oil overseers approved
nine new oil purchase contracts, bringing the total number of approved such
contracts in current phase XI of the programme to 106, covering 263 million
barrels of oil. So far in phase XI, which runs from 1 December 2001 to 29 May
2002, only 78.5 million barrels have been lifted out of the approved amount,
netting about €1.36 billion or $1.18 billion in estimated revenue.
Since the start of the programme on 10
December 1996, Iraq has exported some 2.88 billion barrels of oil, raising
about $38.6 billion and €14 billion ($12.2 billion) in 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.
Also since the beginning of the programme, humanitarian
supply contracts worth some $31.3 billion have been both approved by the 661
Committee and “fast-tracked” by the Office of the Iraq Programme (OIP),
including $2.8 billion worth of contracts for oil industry spare parts and
equipment. Of this amount, $18.9 billion worth of humanitarian supplies and
equipment, thus far, have been delivered to Iraq, including $1.1 billion worth
of oil industry equipment. Another $10.7 billion worth of humanitarian
supplies and $1.7 billion worth of oil industry equipment are in the
production and delivery pipeline.
Only two contracts, worth $0.95 million, were released from
hold by the 661 Committee during the week in review, while 63 new contracts,
worth $109.8 million, were put on hold by the Committee. Altogether, 1,997
contracts, valued at $5.15 billion, were on hold for the purchase of various
humanitarian supplies and equipment, of which 1,379 contracts, worth $4.47
billion, were for humanitarian supplies and 618 contracts, worth $676 million,
were for oil industry spare parts and equipment.
In the “inactive holds” category, there were 222
contracts, worth $342.7 million, for which the suppliers had not provided the
additional technical information in over 60 days, as requested by the
“holding” Committee member(s). In the category of “active holds”,
there were 525 contracts, worth more than $1.7 billion, for which although the
suppliers had provided the requested information over 60 days ago, the
“holding” Committee member(s) had not yet made a final decision.
As at 25 January 2002, about $1.8 billion and €626 million
in unused funds were available in the United Nations Iraq 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.
