– 11 October 2002)
oil exports under the United Nations oil-for-food programme registered an
average low of about 600,000 barrels per day in the week ending 11 October.
However, a number of vessels that began loading during the period in review,
completed the process only over the weekend of 12 -13 October and these will
be reflected in the following week’s export figures, thereby showing a
considerable increase in export levels.
4.1 million barrels, the week’s exports were completed in four shipments –
one from Mina al-Bakr terminal with one million barrels of oil and three from
Ceyhan terminal with 3.1 million barrels. At an average price of
€26.10 (euros) or
$25.70 per barrel, the exports generated an estimated €107 million or $105
million in revenue, at current prices and rate of exchange.
United Nations oil overseers approved seven new oil purchase contracts for
31.5 million barrels of crude oil, bringing their total in current phase XII
of the programme to 185 approved contracts for 464.5 million barrels of oil.
So far in this phase, the contract-holders have shipped 133.2 million barrels
of oil out of Iraq, worth approximately €3.37 billion or $3.3 billion. Phase
XII runs from 30 May to 25 November 2002.
would need to export about $7 billion worth of oil during the current phase in
order to meet its humanitarian programme budget of over $5 billion. The
humanitarian programme receives 72 per cent of the oil revenue, with 25 per
cent being allocated to the Compensation Commission, 2.2 per cent to the
United Nations for the programme’s administrative costs and 0.8 per cent for
the administration of the UN Monitoring, Verification and Inspection
Since the start of the programme on 10
December 1996, Iraqi oil exports of some 3.2 billion barrels of oil have
generated an estimated $38.6 billion and €20.9 billion ($18.9 billion) in
revenue. With the monies allocated to the humanitarian programme from the
total revenue, more than $38.3 billion worth of contracts have been approved
by the Security Council’s 661 sanctions committee and the Office of the Iraq
Programme (OIP) for various humanitarian supplies and equipment, including
about $3.4 billion worth of oil industry equipment. Supplies and equipment
worth over $25.3 billion have reached Iraq, including $1.5 billion worth of
oil industry equipment. 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.
revenue shortfall from earlier phases of the programme has left 1,441 approved
humanitarian supply contracts, worth over $2.68 billion without funds.
The sectors affected by the revenue
shortfall are: agriculture with $503 million; food handling with $485 million;
electricity with $404 million; health with $290 million; housing with $289
million; water and sanitation with $273 million; telecommunications and
transportation with $227 million; education with $192 million and; food with
Out of a total of 2,374 contracts for
humanitarian supplies worth over $4.18 billion processed by the United Nations
Secretariat under the new set of procedures of Security Council resolution
1409 (2002), based on the Goods Review List (GRL), 1,489 contracts worth about
$1.89 billion (45.2 per cent) have been approved by OIP after having been
assessed by UNMOVIC and the International Atomic Energy Agency (IAEA) as not
containing any GRL items, including a number of contracts previously placed on
hold by the 661 Committee. UNMOVIC/IAEA have categorized 828 contracts worth
$2.19 billion (52.4 per cent) as “GRL non-compliant”, requiring additional
technical information from suppliers to enable final assessment. So far, 57
contracts worth $98.2 million (2.3 per cent) have been found to contain GRL
items, of which nine contracts have been approved and two rejected by the
Committee. One GRL-contract has lapsed in the absence of a petition from
the supplier to the Committee. The remainder are at various stages of action
either by the suppliers or the Committee.
Under paragraph 18 of the new set of
procedures, some $746 million worth of contracts previously on hold by the 661
Committee, have now been re-assessed as not to contain GRL items and,
therefore, approved by OIP, while UNMOVIC/IAEA have requested additional
information from suppliers on $1.75 billion worth of contracts previously on
hold. GRL items have been found in 38 contracts previously on hold worth $86
million. There remain 637 contracts on hold worth about $2.2 billion, of which
435 contracts valued at $1.89 billion are for humanitarian supplies and 202
contracts worth $315 million are for oil industry equipment.