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Iraq Agrees to Visit by UN Experts on Oil Industry
Iraq has agreed to a visit by UN experts to discuss how Baghdad will spend funds allocated to train and pay oil workers in an effort to upgrade its oil industry, a U.N spokesman said on Thursday.
The trip arose from a December UN Security Council resolution that allowed Iraq to spend 600 million euros, the equivalent of $550 million, in cash over six months for its oil industry as well as to buy local goods rather than ordering all its supplies abroad.
UN spokesman Fred Eckhard said the seven-member team would leave for Baghdad after it works out details with Iraq over the length of its stay and the scope of the work.
He said Iraq had sent the United Nations a letter agreeing to the visit of the team "to examine ways to implement the cash component for the oil industry."
The funds come from Iraqi oil sales revenues under the UN humanitarian program. Baghdad is allowed to sell crude on the open market with revenues deposited in a UN escrow account.
The United Nations then authorizes Iraq's purchases of food, medicine and other supplies to ease the impact of sanctions imposed when Baghdad invaded Kuwait in August 1990.
The Security Council has allowed Iraq to spend a portion of the revenues from the program to upgrade its oil industry and purchase spare parts and equipment.
But until December of last year, the funds had to be spent outside of Iraq. Baghdad then lobbied the council for funds that could be spent locally for such expenses as repairs, salaries and training.
The council in a Dec. 5 resolution approved the request, so long as expenditures could be monitored by UN experts and the council could then give final approval.
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