Iraq expected to earn just over $5 billion in current phase of 'oil-for-food' programme

Iraq expected to earn just over $5 billion in current phase of 'oil-for-food' programme

Baghdad is expected to earn only about $5.4 billion during the current phase of the United Nations humanitarian oil-for-food programme, according to the UN office overseeing the effort, which allows Iraq to use a portion of its petroleum revenues to purchase relief supplies.

The Office of the Iraq Programme reported that the Baghdad Government had forecast a $5.5 billion budget for the purchase of humanitarian supplies and equipment during the current phase, which began on 4 July and runs through the end of this month. Under the oil-for-food programme, 72 per cent of petroleum proceeds goes to fund the relief effort.

Iraqi oil exports slipped further in the week ending 2 November to 14.6 million barrels, down from the previous week's total of 14.9 million barrels, the Office said. Earning approximately €18.58 (euros) or $16.82 per barrel, Iraq took in an estimated €237 million or $215 million in revenue.

The Security Council committee monitoring the sanctions against Iraq still had holds on contracts for various supplies and equipment worth almost $4.1 billion. This figure includes 155 contracts valued at $290 million, which were in the "inactive holds" category. Contracts are categorized as "inactive holds" after information requested by the committee is not provided by suppliers in 60 days. Once this information is received, the relevant contract is put back in the "active holds" category for action.