11 March 2003
Oil Exports and Revenues Down for the Week
oil exports and revenues under the Oil-for-Food Programme slipped to
10 million barrels and $287 million respectively for the week (1-7
March). Exports averaged 1.4 million barrels a day compared with 1.9
million barrels the previous week and an average of 1.73 million
barrels per day during February.
were seven loadings from the authorized terminals: three from the
Iraqi oil platform at Mina al-Bakr (6.58 million barrels) and four
from the Turkish Mediterranean oil terminal at Ceyhan (3.46 million
barrels). These are the only outlets for Iraqi oil exports allowed
under the Oil-for-Food Programme.
exports for the week
(10.0 million barrels) generated estimated revenue
of €260 million (euros) or $287 million, at current prices and
rate of exchange. The average price of Iraqi crude for the reporting
period was approximately €25.75 or $28.45 per barrel.
oil overseers approved four new oil purchase contracts for the week.
The current total of approved contracts is 136, covering 361 million
barrels of oil. Estimated revenue generated from the beginning of
phase Xlll (5 December 2002 – 3 June 2003) at current prices and
rate of exchange, stands at $4.3 billion for 153.8 million barrels
total 5,973 contracts for humanitarian supplies worth $11.4 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 4,648
contracts worth about $7.2 billion (63.5 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
include 1,118 contracts worth about $2.2 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, 1,060 worth almost $3.4 billion (29.6 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, 303 contracts worth $1.1 billion have
been found by UNMOVIC/IAEA to contain one or more GRL items. Of
these, 144 contracts worth $197 million have been reviewed by the
Security Council’s 661 Sanctions Committee, of which, 31 contracts
worth $15.0 million have been approved. Forty three contracts worth
$50.9 million, have lapsed because the suppliers have not submitted
a petition within 30 working days of the denial. Twenty nine of the
303 contracts, worth $60.6 million, have been rejected because of a
“high risk of diversion to military use.” An additional 36
contracts worth $69.4 million have been denied approval by the 661
Committee, pending appeal.
Contracts containing GRL items represent 9.8
per cent, in terms of value, of all applications processed by the UN
experts so far.
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, 2,632 UN-approved humanitarian supply contracts
worth some $5.1 billion, currently lack funds. The sectors affected
by the revenue shortfall are: agriculture ($850 million); food
handling ($808 million); housing ($666 million); electricity ($562
million); telecommunications and transportation ($454 million);
water and sanitation ($491 million); food ($421 million); education
($400 million); health ($385 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 $64 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
December 1996 more than $43 billion worth of humanitarian supplies,
including $3.8 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 $26.8 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.