(24-30 August 2002)
With no loadings from Mina al-Bakr since 21
August 2002, Iraqi oil exports under the United Nations oil-for-food programme
averaged 700, 000 barrels per day, thus, reaching a total of 4.9 million
barrels during the week ending 30 August. Completed in five loadings, the
week’s exports yielded an estimated revenue of €125
million (euros) or $123 million, at current prices and rate of exchange,
bringing the total estimated revenue in current phase XII of the programme to
€2.18 billion or $2.1 billion. The average price of Iraqi crude oil was
approximately €25.75 or $25.20 per barrel.
Phase XII runs from 30 May to 25 November 2002. So far in
this phase, total exports of Iraqi crude have amounted to 89 million barrels
of oil out of 346 million barrels approved by the United Nations oil overseers
under 154 oil purchase contracts.
Owing to a cumulative revenue shortfall since phase VIII
of the programme, 1,135 approved humanitarian supply contracts, worth about
$2.1 billion, remain without available funds. The sectors affected by the revenue shortfall are: electricity with $392
million; agriculture with $342 million; food handling with $319 million;
housing with $291 million; water and sanitation with $268 million; health with
$233 million; education with $129 million; telecommunications and
transportation with $111 million, and; food with $24 million.
Since the beginning of the programme on
10 December 1996, Iraq has exported some 3.1 billion barrels of oil at an
estimated $38.6 billion and €19.7 ($17.7 billion) in revenue.
With 72 percent of the oil proceeds allocated to the humanitarian
programme, some $36.8 billion
worth of contracts for the purchase of various humanitarian supplies and
equipment have been approved by the 661 committee and by OIP, including about
$3.3 billion worth of oil industry spare parts and equipment. So far, about
$24.2 billion worth of supplies and equipment have been delivered to Iraq,
including $1.5 billion worth oil spare parts and equipment, while another $9.7
billion worth of supplies and equipment, for which funds have been available,
are in the production and delivery pipeline, including $1.8 billion worth of
oil industry equipment.
implementation of the new set of procedures under resolution 1409 (2002) as of
15 July 2002, some $220 million worth of supplies under 196 contracts
previously on hold by the 661 Committee, have now been re-assessed as not to
contain Goods Review List (GRL) items and therefore, approved by OIP. There
remain 1,664 humanitarian supply contracts on hold, worth about $4.2 billion.
Of these 1,145 contracts worth about $3.6 billion are for humanitarian
supplies and 519 contracts worth $623 million are for oil industry spare parts
18 of the new set of procedures under resolution 1409 (2002) divides contracts
on hold into two categories. The first category comprises contracts that
contain “dual use” item(s), as determined by the United Nations
Secretariat experts, which are returned to the submitting Mission or United
Nations agency for possible re-submission under the new procedures. The second
category includes all other contracts on hold which are re-circulated by OIP
under the new procedures. The re-circulation of these contracts will be
completed by 15 September. It is foreseen that with the end of this
process, there will no longer be contracts on hold.