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>From OIP website:

                                                2 March 1999

      Concern at interruption in the flow of Iraqi oil for export

     The Executive Director of the United Nations Office of the
     Iraq Programme, Benon V. Sevan is deeply concerned at
     recent incidents which have resulted in an interruption in the
     flow of Iraqi oil for export and says any extended stoppage
     will aggravate further the lack of funding available for
     humanitarian supplies under the oil for food programme.

     Mr Sevan said today: "Given the depressed price of oil and the
     state of Iraq's oil industry, there's currently a $900 million gap
     between the revenue expected and what's needed to fund the
     humanitarian programme. This shortfall is already cutting
     deeply into the allocations for water and sanitation, agriculture
     and education."

     The Kirkuk to Ceyhan pipeline was shut down on Sunday
     evening following damage to a communications repeater
     station about 125 kilometres from the Zakho metering station
     on the border with Turkey. The prospects for an early
     resumption of oil flows faded today with reports that a second
     communications facility has also been damaged. The second
     facility is at Ain Zala, 40 kilometres from Zakho. 

     The UN's independent inspection agents, monitoring the
     export of Iraqi oil, yesterday visited repeater station 6 and
     reported on the extent of the damage which Iraqi officials said
     had been caused by an airstrike. A report is also expected on
     the damage to the Ain Zala facility. 

     The pipeline from Kirkuk to Ceyhan carries half the oil Iraq is
     permitted to export under the terms of Security Council
     resolutions establishing the oil for food programme. Since
     exports began under Phase V, which runs from 26 November
     1998 to 24 May 1999, Iraq has been exporting an average of 2
     million barrels a day.

     In the week to 28 February, Iraq exported 15 million barrels of
     oil with an estimated value of $136 million. The revenue
     generated since the beginning of Phase V is estimated at
     $1475 million from the export of 171 million barrels giving an
     average value of $8.62 per barrel. 

     Another two contracts for the sale of oil have been approved:
     one to a French company for 1.8 million barrels of Kirkuk
     crude for Europe; the second to a Russian company for five
     million barrels of Basrah Light for the USA and two million
     barrels of Kirkuk crdue for Europe.

     As at 28 February, the oil overseers and the Security Council's
     661 Committee had approved 84 contracts for the export of
     Iraqi oil with a total volume of 316.3 million barrels (165.8m
     Basrah Light, 150.5m Kirkuk).

     During the week, the 661 Committee approved 15 contracts
     for oil industry spare parts and equipment worth $18,937,620.
     Seven of these had earlier been placed on hold. The OIP has
     now received 522 contracts worth $278.8million. Of these,
     382 contracts worth $227,971,040 have been approved and 93
     contracts worth $27.5 million remain on hold. Two shipments
     of oil spare parts arrived in the past week - one for $145,727
     and the other for $21,170 worth of pipeline equipment and

     Humanitarian supplies continued to arrive at the three land
     entry points and at Iraq's port of Umm Qasr. In addition to
     food and medicine, arrivals included: examination copybooks,
     chlorine gas, tractors, wheel chairs, tyres, trucks, diesel
     generators, paper for offset printing, spare parts for water
     treatment plants and spares for power plants. 

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