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  27 June 2000  
Oil-for-Food Background Information

 

The 661 Committee Approves the First Oil Sale Contract Under Phase VIII

During the period 17 to 23 June Iraq exported 16 million barrels of oil for revenue estimated around $430 million. The revenue generated from the beginning of Phase VIII at current prices is estimated to be about $801 million. Since the inception of the programme on 10 December 1996, Iraq has exported nearly 1.860 billion barrels with a value of $29.822 billion.

The Security Council Committee has approved the first contract for the sale of Iraqi oil under phase VIII. It was to a Russian Company for three million barrels, destined for Europe, USA and the Far East. The Office of the Iraq Programme has received 27 oil sale contracts since the beginning of the current phase (VIII) on 9 June 2000. The volume of oil contracts approved is 42.287 million barrels (27.121m Basrah Light and 15.166m Kirkuk).

Since the accelerated procedures for the approval of contracts for humanitarian supplies for Iraq came into force on 1 March 2000, the Office of the Iraq Programme (OIP) has notified the 661 Committee of 481applications, worth $1.017 billion. These contracts are for items on the lists approved by the Committee in the food, health, education and agriculture sectors. Pursuant to paragraph 8 of Security Council resolution 1302 (2000), OIP is preparing a list of basic water and sanitation supplies which will not require circulation to the 661 Committee for approval.

Over the past week OIP has received four contracts deemed to include possible dual-use items affected by the provisions of resolution 1051 (1996). The total of applications under this category in phases IV through VII is now 130.

The 661 Committee has approved $6.849 billion dollars worth of contracts in phases IV to VII and put $1.071 billion on hold for the same period. In phases IV to VII, OIP has received a total of 2,691 contracts worth $1.480 billion for the supply of oil industry spare parts and equipment. Of these contracts, the 661 Committee has approved 1,781 worth $915.819 million and put 509, worth $285.818 million, on hold. The total value of contracts on hold all sectors is now $1.357 billion.

Humanitarian supplies and equipment for the oil industry continued to arrive normally during this period through the three land border points and at the Iraqi port of Umm Qasr.

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Produced for media and public information – not an official United Nations Document
For further information please contact Hasmik Egian, OIP - NY, 1.212.963.4341