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6 February 2001  
Oil- for- Food Background Information


Update for the period
27 January - 2 February 2001

Citing changes in crude oil market prices, the Iraqi State Oil Marketing Organization (SOMO) has proposed to revise its earlier submitted and approved prices for Kirkuk grade sold in the European and United States markets, as well as for United States market destined Basrah Light grade during the month of February.  The revised prices were approved this morning by the Security Council’s 661 sanctions Committee for Iraq, on the recommendation of the United Nations oil overseers.  The earlier approved prices for Basrah Light sold in the European and Far Eastern markets remain unchanged.

During the week 27 January to 2 February, Iraqi oil exports under the United Nations oil-for-food programme totaled 13.2 million barrels, earning an estimated €317 million (euros) in revenue.  Of the eight loadings, six were at Mina al-Bakr and two at Ceyhan.

So far, Iraq has exported 53.7 million barrels of oil for approximately €1.2 billion (euros) in estimated revenue in current phase IX, which began on 6 December 2000.

The oil overseers and the 661 Committee approved 10 new contracts for the purchase of Iraqi oil, comprising 15 million barrels of Kirkuk crude destined for the United States and European markets and 13 million barrels of Basrah Light for the United States, European and Far Eastern markets.  Currently, over 238.1 million barrels of oil await to be lifted against 95 approved contracts (141.4 million barrels of Basrah Light and 96.6 million barrels of Kirkuk).

Since the beginning of the programme on 10 December 1996, Iraq has exported over 2,260 million barrels of oil, raising an estimated total revenue of over $38.6 billion and €1.2 billion (euros).

In phases IV to VIII, the Committee has now approved over $10.7 billion worth of contracts for humanitarian supplies.  An additional $3.1 billion worth of contracts have been processed by the Office of the Iraq Programme (OIP) under “fast track” procedures, based on pre-approved lists of supplies.  The Committee has also approved 2,363 contracts worth $1.28 billion for the purchase of oil industry spare parts and equipment, while another 91 contracts, worth over $61 million have been "fast tracked" by OIP.

The total value of contracts placed on hold by the 661 Committee increased once again, standing at over $3.1, having decreased a full percentage point during the previous week.  It represents 16.5 per cent of the total value of all contracts circulated to the Committee.  Of this total, more than $2.6 billion worth were for humanitarian supplies and $433 million worth for oil industry spare parts and equipment.

During the week, 12 contracts worth $11 million were released from hold, while 26 new contracts worth $44.8 million were placed on hold.  Those released from hold included such supplies as medical equipment, a packing and weighing system used in the food-handling sector, turbine spare parts and gas turbine parts.  The new “on hold” contracts are for ambulances, sprinkler irrigation system, compressors, microwave digital link and laboratory equipment.  

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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