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10 April 2001  

Oil-for-Food Background Information


Update for the period

(31 March - 6 April 2001)

The Iraqi oil exports under the United Nations oil-for-food programme surged to an average of 2.29 million barrels a day in the week leading to 6 April 2001, from the previous week’s average of 1.8 million barrels a day. The sale of 16 million barrels of oil generated an estimated €356 million (euros) in revenue at current prices. Of the total nine loadings, five were at Mina al-Bakr and four at Ceyhan terminals. The average price of Iraqi crude oil during the week was approximately $19.89 or €22.24 (euros) per barrel.

In current phase IX, which runs from 6 December 2000 to 3 June 2001, Iraq has exported 163.4 million barrels of oil, so far, raising an estimated €3.5 billion (euros) in revenue. The total Iraqi oil exports since the beginning of the oil-for-food programme on 10 December 1996 now stand at almost 2,370 million barrels, for an estimated revenue of some $38.6 billion and €3.5 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 United Nations 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.

During the week, the United Nations oil overseers, on behalf of the Security Council’s 661 sanctions Committee, approved seven new oil purchase contracts for seven million barrels of Basrah Light and five million barrels of Kirkuk crude. There are now 146 approved contracts for the lifting of over 451 million barrels of oil, 275 million of which are for Basrah Light and 176 million for Kirkuk.

The total value of contracts placed on hold by the 661 Committee decreased slightly, standing at $3.43 billion, covering 1,676 contracts. Of these, 1,127 contracts worth about $2.99 billion were for humanitarian supplies, while 549 contracts worth $438 million were for oil industry spare parts and equipment.

In phases IV to IX, the Committee has now approved 5,535 contracts worth over $11.6 billion for humanitarian supplies and another 2,417 contracts worth $1.32 billion for the purchase of oil industry spare parts and equipment. The Office of the Iraq Programme (OIP) has notified the 661 Committee of 1,647 contracts worth more than $3.9 billion for humanitarian supplies which have been processed under the “fast track” procedures based on pre-approved lists, while another 143 contracts worth over $94 million have also been “fast tracked” for oil industry spare parts and equipment. “Fast track” procedures were put in place by Security Council resolution 1284 (1999) and began to be implemented in March 2000.

As at 6 April 2001, over $2.62 billion and €1.84 billion (euros) in unused funds were available in the United Nations escrow account for the issuance of additional letters of credit for the purchase of humanitarian supplies and oil spare parts and equipment by the Government of Iraq. 

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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