– 20 September 2002)
months of sluggish oil export levels under the United Nations oil-for-food
programme, Iraq’s exports were up significantly last week to the tune of 1.9
million barrels per day, totalling 13.3 million barrels.
This was the highest single weekly volume of exports registered since
the start of the current phase XII of the programme on 30 May 2002.
Completed through nine shipments, the week’s oil liftings netted an
estimated €351 million
(euros) or $344 million in revenue, at current prices and rate of exchange. Of the total shipments, four were from Ceyhan loading
terminal, with 4.4 million barrels of oil and five from Mina al-Bakr terminal,
with 8.9 million barrels. The
average price of Iraqi crude oil was €26.40 or $25.70 per barrel.
are now 164 approved oil purchase contracts in this phase for 376 million
barrels of oil, including seven new contracts approved by the United Nations
oil overseers during the week for 16.1 million barrels of oil. Of the total volume of oil approved for purchase, to date
111.4 million barrels have actually been shipped out of Iraq by the
contract-holders, worth approximately €2.77 billion or $2.71 billion. Phase
XII ends on 25 November 2002.
the increase in Iraqi oil exports during the week, the volume of approved
contracts for the purchase of humanitarian supplies which are lacking funds
from earlier phases as a result of the cumulative revenue shortfall, in fact
grew to $2.32 billion, covering 1,291 contracts.
The sectors affected by the
revenue shortfall are: food handling with $436 million; agriculture with $400
million; electricity with $395 million; housing with $272 million; water and
sanitation with $258 million; health with $256 million; education with $166
million; telecommunications and transportation with $117 million and; food
with $18 million.
Iraq has exported some 3.1 billion
barrels of oil for an estimated revenue of $38.6 billion and €20.3 billion
($18.3 billion) since the start of the programme on 10 December 1996.
As of December 2000, the humanitarian programme has been receiving 72
per cent of the total oil revenue, while earlier it had been set at 66 per
cent. To date, almost $37.3
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 $3.4
billion worth of oil industry equipment.
Over $24.6 billion worth of supplies and equipment have reached Iraq,
including $1.5 billion worth oil industry equipment, while another $9.4
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
$432 million worth of supplies under 412 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 have sought additional information from suppliers on 183
contracts previously on hold worth $420 million, to enable them to make a
final determination. There remain
1,152 humanitarian supply contracts on hold worth about $3.45 billion, of
which 771 contracts worth about $2.91 billion are for humanitarian supplies
and 381 contracts worth $532 million are for oil industry spare parts and
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 timeframes.