There has been a revenue loss of
over $2.2 billion or €2.4 billion (euros) to
the programme since December 2000, as a result of reduced Iraqi oil exports,
the United Nations oil overseers told the Security Council’s 661 sanctions
Committee yesterday. Should this
trend continue, revenue generated in current phase IX could be around $3.5
billion or €3.9 billion (euros).
However, if export levels return to “normal”, the expected income
could rise to $5.7 billion or €6.3 billion (euros).
The third revision of the
February prices for the purchase of Iraqi crude oil was approved on Friday by
the 661 Committee. The price
adjustment was in reaction to further changes in the oil market and at the
request of the Iraqi State Oil Marketing Organization (SOMO).
The new prices will be in force until 15 March for Kirkuk crude sold in
the United States and European markets, as well as for Basrah Light destined
for the United States market. The
newly approved price of Basrah Light for the European and Far East markets
will be valid throughout March.
Iraqi
oil exports during the week of 17 - 23 February witnessed yet another modest
increase, totaling 12.2 million barrels through seven loadings.
The estimated revenue from these exports was €267 million
(euros) at current prices.
Iraq so far has exported 78.3 million barrels of oil, earning over €1.73
billion
(euros) in phase IX, which began on 6 December 2000.
The cumulative total oil exports since the beginning of the programme
on 10 December 1996 stands at 2,284 million barrels, for an estimated revenue
of $38.6 billion and €1.73 billion
(euros).
Ten new oil
purchase contracts were approved during the week by the United Nations oil
overseers and the 661Committee
for eight million barrels of Kirkuk crude and 12 million barrels of Basrah
Light. Currently, there are 113
approved contracts for the lifting of over 303 million barrels of oil,
comprising 182.4 million barrels of Basrah Light
and 120.6 million barrels of Kirkuk.
The total value of contracts placed on hold by the 661
Committee has continued to rise, standing at over $3.35 billion or 17.1 per
cent of the value of all contracts circulated to the Committee.
Of this total, $2.9 billion was for humanitarian supplies and $436
million for oil industry spare parts and equipment.
During
the week, 24 contracts worth $65.6 million were released from hold by the
Committee and 36 new contracts worth $128.1 million were put on hold by the
Committee for various reasons.
The recently released contracts were for an irrigation system, water
treatment supplies, spare parts for pumps, while the “holds” included
different types of trucks, cranes, water tankers and excavators.
In phases IV to VIII, the Committee has now approved over
$11.1 billion worth of contracts for humanitarian supplies, while an
additional $3.15 billion worth of contracts have been processed by the Office
of the Iraq Programme (OIP) under “fast track” procedures, based on
pre-approved lists of supplies. The
Committee has also approved 2,375 contracts worth more than $1.29 billion for
the purchase of oil industry spare parts and equipment.
OIP has “fast tracked” another 100 contracts worth $63.8 million in
this category.
