Annan calls for quick approval of spare parts for Iraq
Iraq-UN, Economics, 7/9/1999
United Nations Secretary General Kofi Annan has recommended to a Security Council committee for applications for spare parts to be used for repairs to Iraqi oil equipment to be approved as soon as possible.
Annan, who said the Iraqi oil industry is in a "lamentable state," based his recommendation on the findings of a team of experts who visited Iraq last month, submitting the recommendations along with a detailed list of needed parts and equipment to the Security Council.
Annan's letter said Iraq continues to overproduce oil from wells without sufficient maintenance of pressure, causing a "significant number" of wells to cease production and causing irreparable damage to about 20% of them.
"Nevertheless, the water injection programme in the south, assisted by treatment chemicals and the initiation of new production, has allowed for an increase in production at a level greater than the losses incurred," the letter said, adding that this is a short-term increase.
"The current incremental production rates may indeed briefly reach a plateau of 200,000 barrels per day, but they will be achieved with serious environmental consequences, as well as damage to oil wells. Furthermore, the higher production rates will begin to decline unless much-needed chemicals for drilling mud and perforating and other equipment and spare parts - some of which have been placed on hold by the Security Council Committee established by resolution 661 (1990) - are delivered to Iraq in a timely manner," the letter added.
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