In
the week leading to 3 November, Iraq exported 14.8 million barrels of oil with
an estimated value of $389 million. In current phase VIII (June to December
2000) of the oil-for-food programme Iraq has exported 316 million barrels of
oil for a revenue of just over $8 billion.
The United Nations
oil overseers and the Security Council’s 661 sanctions committee for Iraq
last week approved two new contracts for the sale of Iraqi oil.
An Italian company is authorised to
purchase five million barrels of Basrah Light for the United States market,
while two million barrels of Kirkuk crude will be sold to a Ukrainian company
for the European market.
In phase VIII the
Committee has now approved a total of 115 oil purchase contracts with a volume
of over 434 million barrels (259.6 million Basrah Light and 175 million Kirkuk).
Iraq’s total oil
exports since the start of the programme on 10 December 1996 now stand at over
2,146 million barrels, raising slightly more than $37 billion in revenue.
With
regard to humanitarian supplies, the Committee in phases IV to VIII has
approved $8.8 billion worth of contracts. Another $2.7 billion worth have been
processed by the Office of the Iraq Progoramme (OIP) under “fast track”
procedures based on pre-approved lists of supplies since March of this year.
The Committee has also approved a total of 2,267 contracts worth $1.2 billion
for the purchase of oil industry spare parts and equipment, while another 69
contracts worth over $52 million have been approved under the “fast track”
procedures.
The total
value of contracts placed on hold by the Committee as at 3 November was about
$2.3 billion ($2 billion for humanitarian supplies and $299 million for oil
industry spare parts and equipment) or 14.5 per cent of all contracts
circulated. During the week, 22 contracts worth $37.4 million were released
from hold by the Committee, while 40 new contracts worth $83.3 million were
put on hold.
Transport
and telecommunications sector continues to have the highest level of contracts
on hold with almost half of the circulated contracts (47.5 per cent) currently
on hold, followed by electricity sector with 37.8 per cent. Other sectors with
relatively high levels of contracts on hold include water and sanitation (20.2
per cent), agriculture (18.2 per cent) and food handling
equipment/infrastructure (16.6 per cent). The Committee members cite the lack
of technical specifications and potential dual use as reasons for placing a
contract on hold.
