The recommendation, contained in a report to the Security Council officially released yesterday, is based on the work of oil experts sent by the Council to determine whether Iraq could export more oil under the expanded oil for food programme. The Security Council had expanded the oil for food programme in February to allow Iraq to export oil worth 5.2 billion dollars - up from 2.16 billion dollars - over a six month period.

The oil experts, along with the United Nations oil overseers, visited Iraq between March 12 and March 22 for an on-the-spot study. They concluded that the country's oil industry is in ``a lamentable state''.