25 March 2003
Oil Exports Plunge With Onset of
oil exports under the Oil-for-Food Programme fell during the week of
15-21 March to just 25 per cent of the previous week’s level. Exports
and revenues reached 3.1 million barrels and $63 million
respectively, compared with 12.7 million and $340 million for the
week of 8-14 March. The daily export average was 443,000 barrels
compared with 1.8 million barrels the previous week.
17 March, the Secretary-General announced the temporary withdrawal
of all humanitarian personnel from Iraq because he was no longer in
a position to guarantee their security and safety. Although oil
continued to flow through the oil pipeline from northern Iraq to the
Turkish Mediterranean port of Ceyhan, the UN’s independent oil
overseers were withdrawn from the Iraqi oil platform at Mina al-Bakr
in the south. These are the only outlets for Iraqi oil exports
allowed under the Oil-for-Food Programme.
were three loadings from the authorized terminals during the week in
review: one from Mina al-Bakr (2 million barrels) and two from
Ceyhan (1.1 million barrels). The last recorded loading at Ceyhan
was a shipment of about 625,000 barrels on 20 March. No other
vessels are currently expected at Ceyhan, although storage tanks at
the terminal are near capacity.
exports for the week
(3.1 million barrels) generated estimated revenue
of €60 million (euros) or $63 million, at current prices and rate
of exchange. The average price of Iraqi crude for the reporting
period was approximately €20.80 or $22 per barrel.
overseers approved one new oil purchase contract during the week.
The current total of approved contracts is 141, covering 380.4
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 $4.4 billion for 169.6
million barrels of oil.
total 6,314 contracts for humanitarian supplies worth $11.9 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 5,039
contracts worth about $8.2 billion (68.2 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 1,146 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, 987 worth $3 billion (25.2 per cent in terms of
value) are on GRL Non Compliant status. UNMOVIC and IAEA will
require additional technical information from suppliers to enable
So far, 332 contracts worth over $1.2 billion
have been found by UNMOVIC/IAEA to contain one or more GRL items. Of
these, 179 contracts worth $239 million have been reviewed by the
Security Council’s 661 Sanctions Committee, of which, 34 contracts
worth $16.4 million have been approved. Fifty one contracts worth
$56.9 million, have lapsed because the suppliers have not submitted
a petition within 30 working days of the denial. Thirty of the 332
contracts, worth $60.6 million, have been rejected because of a
“high risk of diversion to military use.” An additional 50
contracts worth $100.8 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, 2,755 UN-approved humanitarian supply contracts
worth some $5.6 billion, currently lack funds. The sectors affected
by the revenue shortfall are: food handling ($986 million);
agriculture ($859 million); housing ($830 million); electricity
($563 million); telecommunications and transportation ($540
million); water and sanitation ($514 million); food ($426 million);
health ($410 million); education ($408 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 $27 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.