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13 March 2001  

Oil-for-Food Background Information


Update for the period
3 - 9 March 2001

Iraq exported, on average, 1.5 million barrels of oil a day during the week of 3 - 9 March 2001, totaling 10.2 million barrels under the United Nations oil-for-food programme. There were six loadings at the two authorized terminals of Mina al-Bakr and Ceyhan. The week’s exports raised an estimated €213 million (euros) in revenue at current prices.

The average price of Iraqi crude oil during the period was approximately $21.42 or €23 (euros) per barrel. In the current phase IX, which runs from 6 December 2000 to 3 June 2001, Iraq has so far exported 100.8 million barrels of oil for an estimated revenue of over €2.18 billion (euros).

The total Iraqi oil exports now stand at 2,307 million barrels, having earned some $38.6 billion and €2.18 billion (euros) in estimated revenue since the start of the programme on 10 December 1996.

The United Nations oil overseers and the Security Council’s 661sanctions Committee approved five new oil purchase contracts during the week for six million barrels of Kirkuk crude and four million barrels of Basrah Light. There are now 121 approved contracts for the lifting of over 343 million barrels of oil, 205 million barrels of which are for Basrah Light and 138 million barrels for Kirkuk.

The total value of contracts placed on hold by the 661 Committee increased slightly during the week. There were 1,658 contracts worth over $3.35 billion on hold, representing 17.1 per cent of the value of all contracts circulated to the Committee. Of these, 1,104 contracts worth $2.92 billion were for humanitarian supplies, while 554 contracts worth $427 million were for oil industry spare parts and equipment.

During the week, 21 contracts worth $21 million were released from hold by the Committee and 37 new contracts worth $50.8 million were put on hold by the Committee for various reasons.

The recently released contracts included water well units, water tankers, welding sets, a cement factory plant and five contracts for aluminum hydroxide. The latter is a raw material used in the production of aluminum sulfate, which is an important substance in the water purification process. The aluminum hydroxide contracts were released from hold on condition of close end-use observation by the United Nations observation mechanism in Iraq. Contracts newly placed on hold included computers, cranes, fire fighting vehicles, water tankers, turbine and compressor blades and a sprinkler irrigation system.

In phases IV to IX, the Committee has now approved 5,339 contracts worth almost $11.3 billion for humanitarian supplies and another 2,389 contracts worth about $1.3 billion for the purchase of oil industry spare parts and equipment. The Office of the Iraq Programme (OIP) has notified the Committee of 1,499 contracts worth $3.2 billion for humanitarian supplies which have been processed under “fast track” procedures based on pre-approved lists, while another 106 contracts worth over $64 million have also been “fast tracked” for oil industry spare parts and 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