of Iraqi oil under the United Nations oil-for-food programme bounced back from
the previous week’s low of 2.6 million barrels to 6.4 million barrels in the
week leading to 13 September 2002. Averaging
just over 914,000 barrels per day, the exports were completed in five
shipments – four from Ceyhan loading terminal with 4.8 million barrels of
oil and one shipment from Mina al-Bakr terminal with 1.6 million barrels.
At an average price of approximately €26.35
(euros) or $25.75 per barrel for Iraqi crude oil, the week’s exports brought
in €170 million or $165 million in estimated revenue, at current prices and
rate of exchange.
United Nations oil overseers approved three new oil purchase contracts.
There are 157 such contracts in current phase XII of the programme for
354 million barrels of oil. So
far, the contract-holders have shipped about 98 million barrels of oil from
Iraq in this phase worth approximately €2.43 billion or $2.38 billion. Phase
XII runs from 30 May to 25 November 2002.
Of the total oil proceeds, 72 per cent is earmarked for the
humanitarian programme. The
Government of Iraq has budgeted the programme in this phase at $5.08 billion.
the surge in the level of oil exports during the week, the cumulative revenue
shortfall remained almost constant at just under $2.21 billion for 1,217
approved humanitarian supply contracts that are without funds.
The sectors affected by the revenue
shortfall are: food handling with $420 million; electricity with $393 million;
agriculture with $369 million; housing with $267 million; water and sanitation
with $250 million; health with $242 million; education with $139 million;
telecommunications and transportation with $109 million and; food with $18
Since the start of the programme on
10 December 1996, Iraq has exported some 3.1 billion barrels of oil for an
estimated revenue of $38.6 billion and €20 billion ($18 billion).
To date, almost $37.1 billion worth of contracts for the purchase of
various humanitarian supplies and equipment have been approved by the Security
Council’s 661 sanctions committee and the Office of the Iraq Programme (OIP),
including about $3.3 billion worth of oil industry equipment.
Over $24.5 billion worth of supplies and equipment have reached Iraq,
including $1.5 billion worth oil industry equipment, while another $9.5
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.
With the implementation of the new
set of procedures under Security Council resolution 1409 (2002) on 15 July
2002, some $349 million worth of supplies under 337 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. At the same time, the
United Nations Secretariat experts sought additional information from
suppliers on 132 contracts previously on hold worth $587 million, to enable
them to make a final determination, while another $26 million worth of
supplies under three contracts were found to contain GRL item(s).
There remain 1,428 humanitarian supply contracts on hold worth about
$3.97 billion, of which 974 contracts worth about $3.4 billion are for
humanitarian supplies and 454 contracts worth $574 million are for oil
industry spare parts and equipment.
Paragraph 18 of the new set of procedures
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. Following the
re-circulation and re-assessment of these contracts by the United Nations
Monitoring, Verification and Inspection Commission (UNMOVIC) and the
International Atomic Energy Agency (IAEA) in mid-October, it is foreseen that
there will no longer be contracts on hold.
These contracts will either be approved or denied within specified