14 January
2003
Oil-for-Food Background Information
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Weekly Update4-10
January 2003
Iraqi Oil-for-Food Exports Generate $174 million For Week
Iraqi exports under the United Nations oil-for-food programme totaled 6.7
million barrels for the week (4-10 January) – an average of about 0.96 million
barrels per day. There were 5 loadings for the week from
the authorized terminals: three from the Iraqi port of Mina al-Bakr (4.6 million
barrels) and two from the Turkish Mediterranean port of Ceyhan (2.1 million
barrels). These are the only outlets for Iraqi oil exports allowed under the
oil-for-food programme. Total exports for the week
(6.7 million barrels) generated estimated revenue of €166 million (euros) or $174 million, at current
prices and rates of exchange. The average price of Iraqi crude for the reporting
period was approximately €25.40 or $26.70 per barrel. Twelve new contracts were approved by the
oil overseers for the week, bringing the current total to 93, covering 244
million barrels of oil. Estimated revenue generated from the beginning of phase
Xlll (5 December – 3 June 2003) at the current rate of exchange, stands at
$1.4 billion. Contract
Approvals Of a total 4,838
contracts for humanitarian supplies worth almost $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 3,456 contracts worth about $4.6 billion (52 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 List. Approvals include
999 contracts worth more than $1.7 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
1409 (2002). Goods Review
List Of the total
contracts, 1,186 worth about $3.6 billion (40 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, 207 contracts worth $667.4 million
have been found by UNMOVIC/IAEA to contain one or more GRL items. Of these, 103
contracts worth $232.3 million have been reviewed by the Security Council’s
661 Sanctions Committee, of which, 24 contracts worth $9.6 million have been
approved. Eleven have lapsed because the suppliers have not submitted a petition
within 30 working days of the denial. Nine
of the 103 contracts, worth $23.5 million, have been rejected because of a
“high risk of diversion to military use.” An
additional 53 contracts worth $171.6 million have been denied approval by the
661 Committee, pending appeal. Contracts containing GRL items represent
7.4 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, 2,329 UN-approved humanitarian supply contracts worth some $4.4
billion, currently lack funds. The sectors affected by the revenue shortfall
are: agriculture ($777 million); food handling ($611 million); electricity ($466
million); health ($528 million); water and sanitation ($477 million); housing
($434 million); food ($406 million); telecommunications and transportation ($351
million); education ($351 million). Oil-for-food programmeThe oil-for-food programme was established
by the Security Council on 14
April 1995. Some 3.3 billion barrels of
Iraqi oil valued at about $61.1 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 per cent). Since December
1996 about $41 billion worth of humanitarian supplies, including $3.6 billion
worth of oil spare parts, have been approved by the 661 Sanctions Committee and
the Office of the Iraq Programme. Of this amount, some $26 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 $10.4 billion worth of supplies are currently in
the production and delivery pipeline. |
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Produced for media and public
information – not an official United Nations Document |