18 March 2003
Oil Exports and Revenues Rise
exports continued to generate humanitarian revenues for the
Oil-for-Food Programme during the week of 8-14 March. Exports
and revenues reached 12.7 million barrels and $340 million
respectively. The daily export average was 1.8 million barrels
compared with 1.4 million barrels the previous week. The daily
average for February was 1.73 million barrels.
were eleven loadings from the authorized terminals: five from the
Iraqi oil platform at Mina al-Bakr (6.4 million barrels) and six
from Ceyhan (6.3 million barrels). These are the only outlets for
Iraqi oil exports allowed under the Oil-for-Food Programme.
exports for the week
(12.7 million barrels) generated estimated revenue
of €317 million (euros) or $340 million, at current prices and
rate of exchange. The average price of Iraqi crude for the reporting
period was approximately €25.60 or $27.60 per barrel.
oil overseers approved four new oil purchase contracts during the
week. The current total of approved contracts is 140, covering 373
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 $4.5 billion for 166.5
million barrels of oil.
total 6,129 contracts for humanitarian supplies worth $11.6 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 4,820
contracts worth about $7.7 billion (66.7 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
include 1,129 contracts worth about $2.3 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
the total contracts, 1,035 worth $3.1 billion (26.9 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, 314 contracts worth almost $1.2
billion have been found by UNMOVIC/IAEA to contain one or more GRL
items. Of these, 161 contracts worth $229.4 million have been
reviewed by the Security Council’s 661 Sanctions Committee, of
which, 32 contracts worth $15.4 million have been approved. Forty
nine contracts worth $55.1 million, have lapsed because the
suppliers have not submitted a petition within 30 working days of
the denial. Thirty of the 314 contracts, worth $60.6 million, have
been rejected because of a “high risk of diversion to military
use.” An additional 47 contracts worth $97.6 million have been
denied approval by the 661 Committee, pending appeal.
Contracts containing GRL items represent 10
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, 2,642 UN-approved humanitarian supply contracts
worth some $5.4 billion, currently lack funds. The sectors affected
by the revenue shortfall are: food handling ($932 million);
agriculture ($845 million); housing ($703 million); electricity
($558 million); telecommunications and transportation ($532
million); water and sanitation ($497 million); food ($426 million);
health ($406 million); education ($403 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 $44 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 $26.9 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.