(23 - 29 March 2002)
At the average rate of over 2.3 million barrels a day, Iraq’s
weekly oil exports ending on 29 March, regained ground at a total of 16.5
million barrels, generating an estimated €427 million (euros) or $375
million in revenue, at current prices and rate of exchange. The week’s
exports were completed in nine loadings, six from Mina al-Bakr, with 12
million barrels, and three from Ceyhan, with 4.5 million barrels. The average
price of Iraqi crude oil during the reporting period was approximately €25.9
or $22.7 per barrel.
There are now 143 approved oil purchase contracts for 344
million barrels of oil in the current phase XI of the oil-for-food programme,
including six new contracts approved by the United Nations oil overseers
during the week in review. Of the total volume of approved oil, 200 million
barrels are for Basrah Light and 144 million barrels for Kirkuk crude. So far
in phase XI, which ends on 29 May 2002, oil lifted amounts to 190.6 million
barrels, for an estimated revenue of about €4 billion or $3.5 billion. This
has brought the overall volume of Iraqi oil exports since
the beginning of the programme on 10 December 1996 to some 2.99 billion
barrels, which have in turn yielded approximately $38.6 billion and €16.7
billion ($14.5 billion) in revenue.
With a notable decrease of 5% or approximately $280 million,
the total value of contracts placed on hold by the Security Council’s 661
sanctions committee continued its decline for the second consecutive week.
Following the release from hold of several high-value contracts, including a
contract in the electricity sector worth $105 million alone, the total value
of “holds” stood at barely $5 billion. The latter figure covered 2,039
contracts for the purchase of various humanitarian supplies and equipment, of
which 1,396 contracts, valued at about $4.3 billion, were for humanitarian
supplies and 643 contracts, worth 693 million, were for oil industry spare
parts and equipment.
During the week, the 661 Committee released from hold 43
contracts, worth $324 million, while placing on hold 29 new contracts, worth
$44 million.
In the category of “inactive holds”, there were 229
contracts at $472 million for which the suppliers had not provided the
additional technical information requested by the “holding” Committee
member(s) in over 60 days. Also, in the category of “active holds”, the
number of contracts pending feedback from the holding mission(s) in excess of
60 days despite the provision of additional information by the suppliers,
decreased substantially and now stands at 566 contracts, worth some $1.6
billion.
With 72 per cent of the oil export revenue allocated to the
humanitarian programme, some $33.3 billion worth of humanitarian supply
contracts have been approved by the 661 Committee and “fast-tracked” by
the Office of the Iraq Programme (OIP), including some $3 billion worth of
contracts for oil industry spare parts and equipment. To date, approximately
$20.4 billion worth of humanitarian supplies and equipment have been delivered
to Iraq, including $1.2 billion worth of oil industry equipment, while another
$11.1 billion worth of humanitarian supplies and $1.8 billion worth of oil
industry equipment are in the production and delivery pipeline.
About $1.7 billion and €87 million were available in the
United Nations Iraq Account, which however, have been earmarked for the
purchase of oil spare parts and humanitarian supplies under special allocation
aimed at addressing the needs of especially vulnerable groups. Owing to a
continuing funding shortfall, 823 approved humanitarian supply purchase
contracts, worth over $2 billion, could not be funded.
