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)

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Source: Voice of America

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