Bulletin Iraq Fuel Update 04 (21 Apr 2003)
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Overview
The oil terminals are resuming production, under a combination of Iraqi labour and Coalition efforts.
Mosul and Kirkuk refineries: Both operational and producing refined product.
Baghdad and Dowrah refineries: Local managers are working with ORHA, and the employees are returning to work. There appears to be 3-4 days of crude supply in the on-site storage tanks. This is estimated to produce around 20,000 barrels per day.
Basrah refinery: There is product in the storage tanks. The estimates given by a local manager is that the holdings are 22 tanks holding 1 million barrels of diesel in each.
There would appear to be sufficient diesel in Iraq in the supply chain to meet most demands. However, there is a shortage of gasoline and no unleaded. It is therefore recommended that UN agencies, NGO’s and GO’s with vehicle using unleaded make separate arrangements for their supply. We would further suggest that 40 gallon oil drums and a hand pump are considered for smaller stations.
The downstream supply chain from the terminals is a more confusing picture. Private contractors, cooperatives and others with tankers have taken over what was previously state-owned, and appear to be dominating the market. Market prices at the petroleum stations, although way below western levels, are most definitely rising. A rise in 400 percent appears not to be uncommon. The currency most commonly used is reportedly the dinar, but the coalition is using dollars.
Discussions with the Kuwaiti Government transport and fuel representatives was extremely positive. They are most willing to assist with finding experienced contractors, but they require a coordinated approach from UN and NGO’s in order to handle the substantial amounts needed.
ORHA has already received a donation of 25,000 gallons/day for 1 month from the Kuwaiti Oil Co. for the Iraqi water and power system. The Salvation Army’s request for 3500 bottles of propane has also been granted.
Summary
The oil situation, whilst not ideal, seems to be less problematic than initially anticipated. The key to progress is how the Interim Government of Iraq handles the power situation.
Coalition and ORHA are moving to Baghdad during the week.
ABOUT UNJLC
UNJLC is an inter-agency facility reporting to the Humanitarian Coordinator for Iraq and generally to the Inter Agency Standing Committee. Its mandate is to coordinate and optimise logistics capabilities of humanitarian organisations in large scale emergencies. UNJLC operates under the custodianship of WFP that is responsible for the administrative and financial management of the unit. UNJLC is funded from voluntary contributions that are channeled through WFP. The UNJLC project document for Iraq can be viewed at the UNJLC website (www.unjlc.org).
