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7 March 2001  

Oil-for-Food Background Information

 

Update for the period
24 February - 2 March 2001

A new sector - housing, has been added for "fast track" approval procedures, as required under Security Council resolution 1330 (2000).  A list of 26 items for the sector was approved last week by the Security Council's 661 sanctions Committee out of the 53 proposed by the Office of the Iraq Programme (OIP).  Contracts for this "pre-approved" list of supplies will now be processed by OIP, without reverting to the Committee. 

Since March 2000, when "fast track" procedures were first introduced, OIP has processed over $3.17 billion worth of contracts for humanitarian supplies in food, food-handling, health, education, agriculture, water and sanitation sectors, based on pre-approved lists.  Another 104 contracts worth $64.4 million have been "fast tracked" by OIP for oil industry spare parts and equipment.

During the week of 24 February - 2 March 2001, Iraq exported 12.3 million barrels of oil through eight loadings, earning an estimated 252 million (euros) in revenue at current prices.  The average price of Iraqi crude oil during the period was approximately $20.54 per barrel or 22.11 (euros) per barrel.  Iraqi oil exports in phase IX, so far, have totaled 90.6 million barrels for an estimated revenue of over 1.95 billion (euros).

The cumulative total of Iraqi oil exports since the beginning of the United Nations oil-for-food programme on 10 December 1996 now stands at 2,297 million barrels, which has raised $38.6 billion and 1.95 billion (euros) in estimated revenue.

Three new oil purchase contracts were approved during the week by the United Nations oil overseers and the 661Committee for two million barrels of Kirkuk crude and four million barrels of Basrah Light.  Currently, there are 116 approved contracts for the lifting of over 315 million barrels of oil, comprising 191 million barrels of Basrah Light and 124 million barrels of Kirkuk.

The total value of contracts placed on hold by the 661 Committee dropped slightly during the week, standing at over $3.32 billion for 1,664 contracts.  However, the decrease resulted from having several contracts declared null-and-void rather than from "holds" releases.  Of the total "holds", $2.89 billion worth of contracts were for humanitarian supplies and $432 million for oil industry spare parts and equipment.

During the week, 20 contracts worth $32.4 million were released from hold by the Committee, while 37 new contracts worth $53.5 million were put on hold by the Committee for various reasons.

In phases IV to IX, the Committee has now approved over $11.2 billion worth of contracts for humanitarian supplies and another almost $1.3 billion worth for the purchase of oil industry spare parts and equipment.

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For further information please contact Hasmik Egian, OIP - NY, 1.212.963.4341