DATE=12/10/96
TYPE=CLOSEUP (ECONOMICS)
NUMBER=4-09509
TITLE=IRAQ OIL SALES / RELIEF
BYLINE=LINDA CASHDAN
TELEPHONE=619-2443
DATELINE=WASHINGTON
EDITOR=PHIL HAYNES
CONTENT= // INSERTS AND VOICED VERSION IN AUDIO SERVICES //
[EDS, UPDATE INTRO AS NECESSARY]
INTRO: IRAQI OIL WILL SOON BE (HAS BEGUN) FLOWING TO THE
OUTSIDE WORLD FOR THE FIRST TIME SINCE IRAQ INVADED
KUWAIT IN AUGUST, 1990. VOA'S LINDA CASHDAN REPORTS AS
A RESULT OF A HUMANITARIAN AGREEMENT WITH THE U-N
SECURITY COUNCIL, IRAQ IS BEING PERMITTED TO SELL UP TO
TWO-BILLION DOLLARS WORTH OF OIL OVER THE NEXT SIX
MONTHS.
TEXT: THE REVENUES FROM IRAQ'S OIL SALES WILL BE USED FOR
HUMANITARIAN SUPPLIES -- FOOD AND MEDICINE FOR THOSE IN
IRAQ WHO NEED BOTH. HUMAN RIGHTS WATCH SPOKESMAN JOE
STORK SAYS THAT WHILE SADDAM HUSSEIN HAS REPORTEDLY
BUILT LUXURIOUS PALACES FOR HIMSELF AROUND IRAQ,
THOUSANDS OF IRAQI CHILDREN HAVE BEEN DYING EACH MONTH
OF MALNUTRITION AND DISEASE. HE FEARS THE TWO-BILLION
DOLLARS IN OIL REVENUES MAY NOT BE ENOUGH TO RELIEVE THE
SUFFERING.
TAPE: CUT #1 -- STORK
"THE ESTIMATES THAT THE F-A-O (U-N FOOD AND AGRICULTURAL
ORGANIZATION) AND OTHER U-N BODIES HAVE MADE ARE ROUGHLY
TWICE THAT IN TERMS OF WHAT IRAQ WOULD NEED IN TERMS OF
MEETING IT'S NUTRITIONAL NEEDS, IMPORTING ENOUGH FOOD,
AND PARTICULARLY IN THE AREA OF MEDICINE. IN THE AREA
OF MEDICAL GOODS, THE HEALTH SYSTEM IN THE COUNTRY IS
OBVIOUSLY IN VERY GREAT CRISIS, BECAUSE THEY ARE TALKING
ABOUT A SECTOR THAT IS, IN ITS VERY NATURE, EXTREMELY
DEPENDENT ON IMPORTS, AND WHERE THE FOREIGN EXCHANGE
COMPONENT HASN'T BEEN THERE."
TEXT: OIL COMPANIES BELIEVE THE PRESENT ALLOCATION OF
TWO-BILLION DOLLARS IN OIL EXPORT EARNINGS WON'T BE
ENOUGH, AND THEY ARE FLOCKING TO IRAQ IN HOPES OF MAKING
DEALS IF AND WHEN IRAQ IS PERMITTED TO EXPORT MORE OIL
IN THE FUTURE. ROGER DIWAN OF THE PETROLEUM FINANCE
COMPANY SAYS EVEN THE SMALL AMOUNT OF EXPORTABLE OIL HAS
COMPANIES FROM COUNTRIES AROUND THE WORLD LINING UP.
TAPE: CUT #2 -- DIWAN
"THE COMPANIES LOOK AT IT AS AN INTRODUCTION TO THE
BIGGEST PRIZE, WHICH IS THE EXPLORATION FIELDS IN IRAQ.
IRAQ IS PROBABLY RIGHT NOW THE MOST UNDERDEVELOPED OIL
EXPLORATION AREA IN THE WORLD. LAST TIME THERE REALLY
WAS SERIOUS EXPLORATION IN IRAQ WAS PROBABLY IN THE
MID-70S AND THE RESERVES WERE PUT AT 100-BILLION
BARRELS. THE POTENTIAL FOR RESERVES IN IRAQ IS PROBABLY
AS HIGH AS SAUDI ARABIA, WHICH IS THREE TIMES THIS
100-BILLION BARREL NUMBER, SO ALL THE OIL COMPANIES ARE
LOOKING TO GET A FOOTHOLD IN IRAQ TO HAVE THE RIGHT TO
START EXPLORATION AND PRODUCTION THERE."
TEXT: THUS FAR, MR. DIWAN SAYS, EUROPEAN FIRMS APPEAR TO HAVE
THE INSIDE TRACK IN IRAQI OIL PURCHASES.
TAPE: CUT #3 -- DIWAN
"THEY'VE BEEN NEGOTIATING WITH IRAQ FOR A VERY LONG
TIME. IRAQ HAS ALMOST SIGNED THREE EXPLORATION DEALS
WHICH ARE VERY LARGE WITH THREE COMPANIES. THEY
REPRESENT TWO COUNTRIES -- RUSSIA AND FRANCE -- THAT
HAVE BEEN MOST HELPFUL TO IRAQ IN THE U-N SECURITY
COUNCIL ABOUT LIFTING THE SANCTIONS OR GETTING CLOSER TO
THAT, SO THOSE COUNTRIES ARE SEEN AS MORE FRIENDLY."
TEXT: UNDER THE UNITED NATIONS ACCORD, IRAQ WILL BE EXPORTING
ABOUT 600- THOUSAND BARRELS A DAY, A RELATIVELY
INSIGNIFICANT AMOUNT WHEN YOU CONSIDER TOTAL WORLD
SUPPLIES. AS A COMPARISON, THE UNITED STATES IMPORTS
AROUND EIGHT-MILLION BARRELS A DAY. JOHN LICHTAU,
CHAIRMAN OF THE PETROLEUM INDUSTRY RESEARCH FOUNDATION,
SAYS IT IS IRAQ'S POTENTIAL THAT IS ATTRACTING CUSTOMERS
TODAY.
TAPE: CUT #4 -- LICHTAU
"THESE COMPANIES WANT TO GET BACK INTO BUSINESS WITH
IRAQ, AND SO THIS IS THE TIME TO DO IT RIGHT, WHEN THERE
IS THIS OPENING. IT'S A VERY SMALL AMOUNT THAT THEY CAN
SELL COMPARED TO THREE-MILLION BARRELS A DAY WHICH THEY
COULD HAVE SOLD BEFORE THE IRAQI INVASION OF KUWAIT AND
THE WAR STARTED."
TEXT: WHILE IRAQ'S OIL EXPORTS WILL BE LIMITED, ANALYSTS SAY
THEY COULD NOT HAVE COME AT A BETTER TIME FOR THE WORLD
MARKET, WHERE TIGHT SUPPLIES HAVE PUSHED PRICES TO A
SIX-YEAR HIGH. (SIGNED)
NEB/LC/PCH
10-Dec-96 2:27 PM EST (1927 UTC)
NNNN
Source: Voice of America
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