(16 - 22 March 2002)
Averaging less than one million barrels per day, Iraq’s
oil exports saw a steep decline to 6.7 million barrels in the week of 16 - 22
March 2002 under the United Nations oil-for-food programme. The week’s
exports, netting an estimated €170 million (euros) or $150 million in
revenue, at current prices and rate of exchange, were completed through four
loadings from Mina al-Bakr terminal only. The last loading from the second
authorized loading terminal of Ceyhan was witnessed on 10 March 2002. The
average price of Iraqi crude oil during the reporting period was approximately
€25.10 or $22.10 per barrel.
The United Nations oil overseers approved two new oil
purchase contracts, bringing the total number of such contracts in current
phase XI of the programme to 137. The volume of oil covered by these contracts
is approximately 330 million barrels, of which 190 million barrels are for
Basrah Light and 140 million barrels for Kirkuk crude. Phase XI runs from 1
December 2001 to 29 May 2002. So far in this phase, Iraq has exported 174.1
million barrels of oil, for an estimated revenue of about €3.6 billion or
$3.1 billion. Since the beginning of the programme on 10
December 1996, Iraqi oil exports of some 2.97 billion barrels have yielded
approximately $38.6 billion and €16 billion ($14 billion) in
estimated revenue.
With 72 per cent of the oil export revenue allocated to the
humanitarian programme, some $32.9 billion worth of humanitarian supply
contracts have been approved by the Security Council’s 661 sanctions
committee and “fast-tracked” by the Office of the Iraq Programme (OIP),
including almost $3 billion worth of contracts for oil industry spare parts
and equipment. To date, some $20.2 billion worth of humanitarian supplies and
equipment have been delivered to Iraq, including $1.2 billion worth of oil
industry equipment, while another $10.9 billion worth of humanitarian supplies
and $1.8 billion worth of oil industry equipment are in the production and
delivery pipeline.
The total value of “holds” witnessed a slight decline of
$20 million, bringing it to just under $5.3 billion. The volume covered 2,056
contracts for the purchase of various humanitarian supplies and equipment, of
which 1,414 contracts, valued at about $4.6 billion, were for humanitarian
supplies and 638 contracts, worth $692 million, were for oil industry spare
parts and equipment.
About $1.7 billion and €200 million were available in the
United Nations Iraq Account. However, these funds have been earmarked for oil
spare parts and equipment and for the purchase of humanitarian supplies under
special allocation aimed at addressing the needs of especially vulnerable
groups. As a result of a funding shortfall, although approved, some 807
contracts, worth over $1.7 billion, could not be funded.
During the week, the 661 Committee released from hold 45
contracts, worth $65 million, while placing on hold 21 new contracts, worth
$52 million.
There was a small increase in the value of contracts in the
category of “inactive holds”, which stood at $467 million, for which the
suppliers had not provided the additional technical information requested by
the “holding” Committee member(s) in over 60 days. At the same time, in
the category of “active holds”, the value of contracts pending feedback
from the holding missions in excess of 60 days following the submission of the
requested additional information by the suppliers, decreased substantially
from just over $2 billion to about $1.7 billion.
