On 9 May, Iraq resumed exporting oil under the United
Nations oil-for-food programme, following its month-long suspension. One oil
tanker began lifting oil the same day at Mina al-Bakr loading terminal.
However, since the loading was completed on 11 May, the relevant data will be
reported in next week’s update. There was no loading from the second
authorized terminal of Ceyhan during this period. The average price of Iraqi
crude oil during the week was approximately €26.10 (euros) or $23.70 per
There are now 153 approved oil purchase contracts in the
current phase XI of the programme, including one new contract approved by the
United Nations oil overseers during the week in review. The approved contracts
are for 363 million barrels of oil, of which 208 million barrels are for
Basrah Light and 155 million barrels for Kirkuk crude. So far in this phase,
Iraq has exported 207 million barrels of oil, netting an estimated €4.36
billion or $3.97 billion in revenue, at current prices and rate of exchange.
The phase ends on 29 May 2002.
Since the beginning of the programme on 10 December 1996,
Iraq has exported some 3 billion barrels of oil, for an estimated $38.6
billion and €17 billion ($15 billion) in
revenue. The humanitarian programme receives 72 per cent of the oil proceeds,
with 59 per cent allocated to the 15 central and southern governorates and 13
per cent to the three northern governorates.
Owing to a funding shortfall, currently there are 1,219
contracts, worth over $2.77 billion, for the purchase of humanitarian supplies
and equipment, which although approved, cannot be funded.
To date, some $34.8 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 $3.1 billion worth of contracts for oil industry spare parts
and equipment. About $21.8 billion worth of humanitarian supplies and
equipment have been delivered to Iraq, including $1.4 billion worth of oil
industry equipment. Another $10.1 billion worth of humanitarian supplies, for
which funds were available, including oil industry equipment worth $1.7
billion, were in the production and delivery pipeline.
During the week, the 661 Committee released from hold 16
contracts, valued at $46 million. However, it placed on hold 35 new contracts,
worth $60.5 million.
In all, 2,142 contracts, valued at $5.2 billion, were “on
hold” by the 661 Committee, of which 1,463 contracts, worth $4.5 billion,
were for the purchase of humanitarian supplies and equipment, and 679
contracts, worth $734 million, for oil industry spare parts and equipment.
In the category of “inactive holds”, there were 228
contracts, worth $388 million, for which suppliers had not provided the
additional technical information requested by the “holding” Committee
member(s) in over 60 days. Concurrently, in the category of “active holds”,
there were 493 contracts, worth about $1.4 billion, for which there had been
no feedback from the “holding” Committee member(s) in excess of 60 days,
despite the provision of additional information by suppliers.