(5 - 11 January 2002)
Iraqi oil exports under the United Nations oil-for-food
programme plunged drastically to mere three million barrels in the week ending
11 January, down from the previous week’s high of 15.5 million barrels, with
only one loading each from the loading terminals of Mina al-Bakr and Ceyhan.
This was, so far, the lowest level of weekly exports in current phase XI of
the programme, which began on 1 December 2001 and ends on 29 May 2002. An
estimated €60 million (euros) or $55 million was added to the total
estimated revenue in phase XI, at current prices and rate of exchange, which
now stands at €899 million or $801 million. The average price of Iraqi crude
oil during the week was approximately €20.80 (euros) or $18.55 per
barrel.
The United Nations oil overseers approved 12 new oil
purchase contracts for 32.5 million barrels of Iraqi oil. There are now 82
approved such contracts in phase XI, covering 214 million barrels of oil, of
which 126 million barrels are for Basrah Light and 88 million barrels for
Kirkuk crude. A total of 53.7 million barrels of oil has thus far been lifted
against the approved contracts.
Since the beginning of the programme on 10 December 1996, an
estimated $38.6 billion and
€13.6 billion
($11.8 billion) in revenue has been generated from the export of over
2.85 billion barrels of oil. With the adoption of Security Council
resolution 1330 (2000) on 5 December 2000, 72 per cent of the oil proceeds
fund the humanitarian programme in Iraq, 59 per cent of which is for the 15
central and southern governorates and 13 per cent for the three northern
governorates. Also from the total revenue, 25 percent is allocated to the
Compensation Fund, while 2.2 per cent goes towards covering the United Nations
costs for administering the programme and approximately 0.8 per cent for the
administration of the United Nations Monitoring, Verification and Inspection
Commission (UNMOVIC).
Despite the release from hold of one high-value contract in
the electricity sector, worth $147.5 million, by the Security Council’s 661
sanctions committee, the total value of “holds” placed by the Committee
remained almost unchanged at $4.951 billion. The “holds” covered 1,892
contracts for the purchase of various humanitarian supplies and equipment, of
which 1,297 contracts, worth $4.3 billion, were for humanitarian supplies and
595 contracts, worth $655 million, were for oil industry spare parts and
equipment. During the week, the Committee released from hold 19 contracts,
worth $191.6 million, while placing on hold 51 new contracts, worth $184.7
million.
In the “active holds” category, there were 222
contracts, worth $371 million, for which the suppliers had not provided the
additional technical information in excess of 60 days, as requested by the
“holding” Committee member(s). In the category of “active holds” there
were 440 contracts, worth over $1.3 billion, for which although the suppliers
had provided the requested information, the “holding” Committee member(s)
had not made a final decision in excess of 60 days.
Since the start of the programme, some $31.1 billion worth
of contracts for humanitarian supplies and equipment have been both approved
by the 661 Committee and “fast-tracked” by the Office of the Iraq
Programme (OIP), including $2.8 billion worth of contracts for oil industry
spare parts and equipment. Humanitarian supplies and equipment worth $18.5
billion have been delivered to Iraq, including $1.1 billion worth of oil
industry equipment, while another $10.9 billion worth of humanitarian supplies
and $1.7 billion worth of oil industry equipment are in the production and
delivery pipeline.
As at 11 January 2002, about $1.7 billion and €396 million
in unused funds were available in the United Nations Iraq Account for the
issuance of additional letters of credit for the purchase of humanitarian
supplies and oil spare parts and equipment by the Government of Iraq.