Office of the Iraq Programme Oil for Food

3 October 2000

Oil-for-Food Background Information

Weekly update

There was another increase over the past week in the overall value of contract applications placed on hold by the Security Council’s 661 Sanctions Committee.

The value of holds on contracts for humanitarian supplies rose to $1.89 billion (centre/south of Iraq) while contracts on hold for the oil industry decreased to $257 million. The total value of contracts on hold in all sectors is now just over $2.14 billion. The figure on holds represents 14.5 per cent of all contract applications circulated to the Committee and is a full percentage point higher than last week’s figure.

In the week to 29 September, $30 million worth of contracts were released from hold, while another $183 million worth were put on hold – including two contracts totalling $140 million placed on hold last Friday evening. In many cases the Committee cited the lack of technical specifications as a reason for placing the contract on hold.

There was also some good news. Holds released during the week included two contracts for oil tankers, two contracts for sprinkler irrigation systems, one contract for various valves and a contract for tipper trucks. In these cases, the holds were lifted after additional technical information was provided.

During the week to 29 September 2000, Iraq exported 15.1 million barrels of oil for revenue estimated around $367 million. Since the start of phase VIII on 9 June, Iraq’s oil exports have totaled 235.2 million barrels for revenue of over $5.8 billion. The current phase ends on 5 December 2000.

The Security Council Committee approved one new contract for the sale of Iraqi oil – this was with an Indonesian company for two million barrels of Basrah Light for the Far East market.

There are now 107 contracts approved under phase VIII with a total volume of over 406 million barrels (242.1 million Basrah Light and 163.9 million Kirkuk crude). Since the start of the "oil for food" programme on 10 December 1996, Iraq has exported 2,066 million barrels with a value slightly more than $34.88 billion.

The Committee also approved an additional 46 contracts for the humanitarian programme in Iraq. In phases IV to VIII, the Committee has now approved about $8.24 billion worth of contracts for humanitarian supplies. In the oil sector the Committee has approved 2,177 contracts worth over $1.16 billion.

Using the "fast track" process, based on approved lists in the food, health, water/sanitation, education and agriculture sectors, OIP has now "notified" the Security Council’s 661 Committee of 865 humanitarian supply contracts worth almost two billion dollars. Similarly, in the oil sector, the UN’s group of experts has approved 52 contracts worth just over $40 million.

Humanitarian supplies and equipment for the oil industry continued to arrive normally 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

Oil-for-Food Background Information		Weekly update There was another increase over the past week in the overall value of contract applications placed on hold by the Security Council’s 661 Sanctions Committee. The value of holds on contracts for humanitarian supplies rose to $1.89 billion (centre/south of Iraq) while contracts on hold for the oil industry decreased to $257 million. The total value of contracts on hold in all sectors is now just over $2.14 billion. The figure on holds represents 14.5 per cent of all contract applications circulated to the Committee and is a full percentage point higher than last week’s figure. In the week to 29 September, $30 million worth of contracts were released from hold, while another $183 million worth were put on hold – including two contracts totalling $140 million placed on hold last Friday evening. In many cases the Committee cited the lack of technical specifications as a reason for placing the contract on hold. There was also some good news. Holds released during the week included two contracts for oil tankers, two contracts for sprinkler irrigation systems, one contract for various valves and a contract for tipper trucks. In these cases, the holds were lifted after additional technical information was provided. During the week to 29 September 2000, Iraq exported 15.1 million barrels of oil for revenue estimated around $367 million. Since the start of phase VIII on 9 June, Iraq’s oil exports have totaled 235.2 million barrels for revenue of over $5.8 billion. The current phase ends on 5 December 2000. The Security Council Committee approved one new contract for the sale of Iraqi oil – this was with an Indonesian company for two million barrels of Basrah Light for the Far East market. There are now 107 contracts approved under phase VIII with a total volume of over 406 million barrels (242.1 million Basrah Light and 163.9 million Kirkuk crude). Since the start of the "oil for food" programme on 10 December 1996, Iraq has exported 2,066 million barrels with a value slightly more than $34.88 billion. The Committee also approved an additional 46 contracts for the humanitarian programme in Iraq. In phases IV to VIII, the Committee has now approved about $8.24 billion worth of contracts for humanitarian supplies. In the oil sector the Committee has approved 2,177 contracts worth over $1.16 billion. Using the "fast track" process, based on approved lists in the food, health, water/sanitation, education and agriculture sectors, OIP has now "notified" the Security Council’s 661 Committee of 865 humanitarian supply contracts worth almost two billion dollars. Similarly, in the oil sector, the UN’s group of experts has approved 52 contracts worth just over $40 million. Humanitarian supplies and equipment for the oil industry continued to arrive normally through the three land border points and at the Iraqi port of Umm Qasr.
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