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20 February 2001  
Oil- for- Food Background Information


Update for the period
10 - 16 February 2001

Iraqi oil exports were up considerably during the week of 10 to 16 February under the United Nations oil-for-food programme. 10.8 million barrels of oil were lifted through six loadings - four at Ceyhan and two at Mina al-Bakr - raising an estimated €254 million (euros) in revenue.

In current phase IX, running from 6 December 2000 to 3 June 2001, Iraq so far has exported 66.1 million barrels of oil, earning over €1.47 billion (euros) at current prices. Cumulatively, a total of 2,272 million barrels of oil have been exported since the beginning of the programme on 10 December 1996, for an estimated revenue of $38.6 billion and €1.47 billion (euros).

With the adoption of Security Council resolution 1330 (2000) on 5 December 2000, in current phase IX, around 72 per cent of the oil revenue funds the humanitarian programme in Iraq, 25 per cent goes to the Compensation Fund, while 2.2 per cent covers the United Nations costs for administering the programme and 0.8 per cent for the administration of the UN Monitoring and Inspection Commission (UNMOVIC). Previously, 66 per cent was being allocated to the humanitarian programme, with the Compensation Fund receiving 30 per cent of the funds.

Two new contracts were approved by the United Nations oil overseers and the Security Council’s 661 sanctions Committee during the week for the purchase of two million barrels each of Kirkuk crude and Basrah Light to Qatar- and Cyprus-registered companies. Currently, there are 103 approved contracts for the lifting of over 262 million barrels of oil, comprising 157.4 million barrels of Basrah Light and 104.6 million barrels of Kirkuk.

Also last week, as required by resolution 1330 (2000), the Committee approved the further enlargement of the existing lists of “pre-approved” supplies in several sectors for “fast track” processing by the Office of the Iraq Programme (OIP). Over 700 items have been added to the existing list of supplies in the health sector, 315 items in education, 345 in agriculture, 929 in food-handling, 370 in water and sanitation. Regrettably, the Committee did not include human immunization vaccines in the “pre-approved” list in the health sector, despite the urging for their inclusion by OIP.

In phases IV to VIII, the Committee has now approved over $11 billion worth of contracts for humanitarian supplies, while an additional $3.1 billion worth of contracts have been processed by OIP under “fast track” procedures. The Committee has also approved 2,372 contracts worth more than $1.28 billion for the purchase of oil industry spare parts and equipment. OIP has “fast tracked” another 98 contracts worth $63 million in this category.

The total value of contracts placed on hold by the 661 Committee as at 16 February was $3.28 billion, representing 17 per cent of the value of all contracts circulated to the Committee. Of this total, over $2.8 billion was for humanitarian supplies and $436 million for oil industry spare parts and equipment.

During the week, 19 contracts worth $59.5 million were released from hold, while 58 new contracts worth $154.1 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