– 21 June 2002)
With resumed loadings at Ceyhan terminal, Iraqi oil exports under the United Nations oil-for-food
programme more than doubled from the previous week’s total low of 3.1
million barrels to an average of 1.1 million barrels per day in the week
ending 21 June, or 7.7 million barrels in all. The week’s exports generated
an estimated revenue of €185 million (euros) or $175 million, at
current prices and rate of exchange, bringing the overall estimated revenue in
current phase XII of the programme, which began on 30 May 2002, to €509
million or $491 million.
the seven loadings during the week, six took place from Ceyhan with 5.8
million barrels and only one from the second authorized terminal of Mina al-Bakr,
with 1.9 million barrels of oil. The average price of Iraqi crude oil
was approximately €23.75 or $22.65 per barrel.
total volume of oil exported during phase XII, which ends on 25 November 2002,
has amounted to 21.7 million barrels. With an additional 10 new oil purchase
contracts approved by the United Nations oil overseers, the overall total
stands at 106. The quantity of oil approved for export under those contracts
corresponds to 203 million barrels, of which 114 million barrels are for
Basrah light and 89 million barrels for Kirkuk crude.
persisting funding shortfall faced by the programme has resulted in 1,023 humanitarian supply contracts, worth about $2.26
billion, lacking in funds, although already approved by the United Nations.
The affected sectors, in the order of
the value of approved contracts without funds, are electricity with
$344 million, food with $341 million, food handling with $338 million, housing
with $303 million, agriculture with $274 million, health with $182 million,
communication/transportation with $172 million, water and sanitation with $118
million, education with $105 million and oil spares/equipment with $78
has exported more than 3 billion barrels of oil at an estimated $38.6 billion
and €18 billion ($16 billion) in revenue, since the beginning of the
programme on 10 December 1996. With
72 percent of the oil proceeds allocated to the humanitarian programme, some
$ 35.5 billion worth of contracts for the purchase of various
humanitarian supplies and equipment have been both approved by the Security
Council’s 661 sanctions committee and “fast-tracked” by the Office of
the Iraq Programme (OIP), including about $3.2 billion worth of oil industry
spare parts and equipment. So far, about $22.8 billion worth of supplies and
equipment have been delivered to Iraq, including $1.4 billion worth oil spare
parts and equipment, while another $10.5 billion worth of supplies and
equipment, for which funds have been available, are in the production and
delivery pipeline, including $1.7 billion worth of oil industry equipment.
During the week, the 661
Committee released from hold merely 3 contracts worth $8 million, while it
placed on hold 37 new contracts worth $83 million. There are currently 2,152
contracts on hold for the purchase of various humanitarian supplies and
equipment, valued at almost $5.3 billion. Of these, 1,474 contracts worth
about $4.53 billion are for humanitarian supplies and 678 contracts worth $743
million are for oil industry spare parts and equipment.
18 of the new set of procedures for the processing and review of contracts for
humanitarian supplies and equipment under Security Council resolution 1409
(2002) requires that contracts currently on hold be divided into two
categories. The first category
would comprise contracts that contain “dual use” item(s), as determined by
the United Nations Secretariat experts, which will be returned to the
submitting Mission or United Nations agency for possible re-submission under
the new procedures. The second
category would include all other contracts currently on hold and will be
re-circulated by OIP under the new procedures.
It is foreseen that upon the completion of these processes, there will
no longer be contracts on hold.