25 February 2003
Oil Exports Generate $338 million for Week
exports under the Oil-for-Food Programme totaled 11.9 million barrels for the
week (15-21 February) an average of about 1.7 million barrels per day.
were 11 loadings from the authorized terminals: four from the Iraqi oil platform
at Mina al-Bakr (7.3 million barrels) and seven from the Turkish Mediterranean
oil terminal at Ceyhan (4.6 million barrels). These are the only outlets for
Iraqi oil exports allowed under the Oil-for-Food Programme.
exports for the week
(11.9 million barrels) generated estimated revenue
of €312 million (euros) or $338 million, at current prices and rates of
exchange. The average price of Iraqi crude for the reporting period was
approximately €26.35 or $28.55 per barrel.
oil overseers approved six new oil purchase contracts for the week. The current
total of approved contracts is 127, covering 333 million barrels of oil.
Estimated revenue generated from the beginning of phase Xlll (5 December 2002
3 June 2003) at current prices and at the current rate of exchange, stands
at $3.6 billion for 130.5 million barrels of oil.
total 5,814 contracts for humanitarian supplies worth $11.0 billion processed by
the United Nations Secretariat under the Goods Review List (GRL) and new
procedures under Security Council resolution 1409 (2002), the Office of the Iraq
Programme has approved 4,364 contracts worth about $6.6 billion (59.7 per cent
in terms of value) after assessment by the United Nations Monitoring,
Verification and Inspection Commission (UNMOVIC) and the International Atomic
Energy Agency (IAEA) that they do not contain items on the Goods Review List.
include 1,079 contracts worth more than $2.0 billion that had previously been on
hold by the Security Council’s 661 Sanctions Committee. These have now been
reviewed by UNMOVIC/IAEA under para 18 of the procedures of resolution
total contracts, 1,132 worth about $3.5 billion (32.1 per cent in terms of
value) are on GRL Non Compliant status. UNMOVIC and IAEA will require additional
technical information from suppliers to enable final assessments.
So far, 275 contracts worth $1.0 billion have
been found by UNMOVIC/IAEA to contain one or more GRL items. Of these, 136
contracts worth $297.2 million have been reviewed by the Security Council’s
661 Sanctions Committee, of which, 30 contracts worth $15.0 million have been
approved. Forty, worth $46.9 million, have lapsed because the suppliers have not
submitted a petition within 30 working days of the denial. Twenty five of the
275 contracts, worth $57.9 million, have been rejected because of a “high risk
of diversion to military use.” An additional 37 contracts worth $175.6 million
have been denied approval by the 661 Committee, pending appeal.
Contracts containing GRL items represent 9.1
per cent, in terms of value, of all applications processed by the UN experts so
Humanitarian revenue shortfall
Due to a cumulative oil revenue shortfall
dating from phase VIII (9 June - 5 December 2000) through phase Xll of the
programme, 2,460 UN-approved humanitarian supply contracts worth some $4.6
billion, currently lack funds. The sectors affected by the revenue shortfall
are: agriculture ($735 million); food handling ($710 million); housing ($596
million); electricity ($475 million); food ($457 million); telecommunications
and transportation ($452 million); water and sanitation ($399 million);
education ($390 million); health ($349 million).
oil-for-food programme was established by the Security Council on 14
April 1995. Some 3.4 billion barrels of
Iraqi oil valued at about $63 billion have been exported under the programme
since December 1996. Of this amount, 72 per cent of the total has been allocated
towards humanitarian needs nationwide since December 2000. The balance goes to:
Gulf War reparations through a Compensation Fund (25 per cent since December
2000); UN administrative and operational costs for the programme (2.2 per cent)
and costs for the weapons inspection programme (0.8 per cent).
December 1996 about $43 billion worth of humanitarian supplies, including $3.7
billion worth of oil spare parts, have been approved by the 661 Sanctions
Committee and the Office of the Iraq Programme. Of this amount, almost $26.6
billion worth of humanitarian supplies and equipment have been delivered to Iraq
under the Oil-for-Food Programme, including $1.6 billion worth of oil industry
spare parts and equipment. An additional $10.1 billion worth of supplies are
currently in the production and delivery pipeline.