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13 February 2001  
Oil- for- Food Background Information


Update for the period
3 - 9 February 2001

The Government of Iraq has now submitted its distribution plan for phase IX, which began on 6 December 2000.  A foreseen budget of more than $5.55 billion for the humanitarian programme is spread over 12 sectors countrywide, including an allocation of $600 million for oil industry spare parts and $387 million to meet the needs of especially vulnerable groups.  Over $1.27 billion is earmarked for the food sector, to cover a daily food ration of 2,472 kilocalories per person per day, while $300 million is set aside for the purchase of medicines and medical supplies.

There is no information as yet as to the estimated oil revenue for phase IX.  In phase VIII, almost $7.8 billion was made available for the humanitarian programme with oil export revenues.

Once approved by the United Nations Secretary-General, the distribution plan will become the basis for the Government of Iraq to purchase humanitarian supplies and oil industry spare parts and equipment during phase IX, which ends on 3 June 2001.

The week of 3 - 9 February registered the lowest level of Iraqi oil exports under the United Nations oil-for-food programme.   A total of 1.6 million barrels were lifted through two loadings, raising an estimated €43 million (euros) in revenue.  Iraq has exported 55.3 million barrels of oil, earning over €1.26 billion (euros) at current prices in phase IX.  The cumulative total oil exports since the beginning of the programme on 10 December 1996 stands at 2,261 million barrels for an estimated revenue of $38.6 billion and €1.26 billion (euros).

The United Nations oil overseers and the Security Council’s 661 sanctions Committee approved six new contracts for the purchase of Iraqi oil.  The contracts are for four million barrels of Kirkuk crude destined for the United States and European markets and eight million barrels of Basrah Light for the United States, European and Far Eastern markets.  Overall, there are 101 approved contracts for the lifting of over 258 million barrels of oil (155.4 million barrels of Basrah Light and 102.6 million barrels of Kirkuk).

The Committee has now approved over $10.8 billion worth of contracts for humanitarian supplies in phases IV to VIII, while 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 2,369 contracts worth more than $1.28 billion for the purchase of oil industry spare parts and equipment.  OIP has “fast tracked” another 93 contracts worth almost $62 million in this category.

The total value of contracts placed on hold by the 661 Committee continued to rise, standing at over $3.18 billion, with $2.7 billion for humanitarian supplies and $435 million for oil industry spare parts and equipment.  This represents 16.6 per cent of all contracts circulated to the Committee.

During the week, 24 contracts worth $48.6 million were released from hold, while 56 new contracts worth $112.4 million were put on hold for various reasons.  

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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