(6 - 12 April 2002)
Prior to Iraq’s announced month-long suspension of its oil
exports under the United Nations oil-for-food programme on 8 April, there were
five cargo loadings for a total of 8.6 million barrels of oil between 6 and 8
April 2002. With 7.6 million barrels, four loadings were completed at Mina al-Bakr
terminal and one loading, with one million barrels, was completed at Ceyhan
terminal. At the average price of approximately €25.35 (euros) or $22.30 per
barrel, the week’s exports netted an estimated €220 million or $190
million in revenue, at current prices and rate of exchange.
So far in current phase XI of the programme, which ends on
29 May 2002, Iraq has exported 207 million barrels of oil out of the 360
million barrels approved by the United Nations oil overseers under 151 oil
purchase contracts. The total volume approved is for 207 million barrels of
Basrah Light and 153 million barrels for Kirkuk crude.
Revenue generated in this phase stands at approximately €4.45
billion or $3.91 billion. It is estimated that Iraq’s decision to
temporarily halt its oil exports will reduce phase XI revenue by some $1.3
billion, bringing the total shortfall in funding for the purchase of
humanitarian supplies in this phase to $3.6 billion.
An estimated $38.6 billion and €17.1
billion ($14.9 billion) in revenue has been earned from the export of some 3
billion barrels of oil since the start of the programme
on 10 December 1996. With 72 per cent of the oil revenue being
allocated to the humanitarian programme, some $33.8 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 some $3 billion worth of contracts for oil industry
spare parts and equipment. To date, approximately $21 billion worth of
humanitarian supplies and equipment have been delivered to Iraq, including
$1.3 billion worth of oil industry equipment, while another $11 billion worth
of humanitarian supplies and $1.8 billion worth of oil industry equipment are
in the production and delivery pipeline.
During the week in review, 661 Committee released from hold
11 contracts, worth $43 million, and placed on hold 48 new contracts, valued
at $76 million. Currently, the total value of contracts on hold stands at $5.1
billion, covering 2,086 contracts for the purchase of various humanitarian
supplies and equipment. Of this total, 1,429 contracts, valued at about $4.4
billion, are for humanitarian supplies and 657 contracts, worth $713 million,
are for oil industry spare parts and equipment.
In the category of “inactive holds” there were 236
contracts at $475 million, for which 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
number of contracts pending feedback from the holding Committee member(s) in
excess of 60 days, following the provision of additional information by
suppliers, stood at 491 contracts, worth some $1.6 billion.