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5 June 2001  

Oil-for-Food Background Information


Weekly update

(26 May - 1 June 2001)

Having announced the suspension of its oil exports under the United Nations oil-for-food programme, on 4 June 2001 Iraq stopped pumping oil into the Iraq/Turkey pipeline. The flow of Iraqi oil through this pipeline provides for loadings at Ceyhan terminal. The last vessel was loaded at Ceyhan on 3 June, while at the second authorized terminal of Mina al-Bakr, one vessel was in the process of completing loading on 5 June. Iraq has not scheduled any new loadings for current phase IX of the programme, which has been extended to 3 July. The extension came into effect on 4 June.

In the week 26 May to 1 June 2001, Iraq exported 17.4 million barrels of oil, at the rate of almost 2.5 million barrels a day, raising an estimated €492 million (euros) in revenue, at current prices. Of the total 12 loadings, seven were at Mina al-Bakr, with the lifting of 11 million barrels of oil and five at Ceyhan, with the lifting of 6.4 million barrels. The average price of Iraqi crude oil during the week was approximately $24.10 or €28.30 per barrel.

So far in phase IX, Iraqi oil exports have totaled 285.8 million barrels, for an estimated €6.5 billion in revenue, at current prices. Iraq’s oil exports since the beginning of the programme on 10 December 1996 stand at about 2.49 billion barrels, having generated an estimated revenue of some $38.6 billion and €6.5 billion.

The United Nations oil overseers during the week approved one new oil purchase contracts for two million barrels of Kirkuk crude. There are now 173 approved contracts for the lifting of more than 569 million barrels of oil, of which 349 million barrels are for Basrah Light and 220 million for Kirkuk.

There was a significant drop in the total value of contracts placed on hold by the Security Council’s 661 sanctions committee, following the release from hold of some 410 contracts, worth $703.5 million by the United States only. The reduction in “holds” brought their total value from the previous week’s $3.7 billion to $2.96 billion. The current level of “holds” represents 14 per cent of all contracts circulated to the Committee. The released contracts were for such supplies as trucks, tanker trucks, mobile cranes, firefighting vehicles, forklifts, excavators, bulldozers, steel plates, pipes, compressors, medical equipment, laboratory chemicals, generators, pumps, spare parts for various sectors, including oil industry, welding, drilling and irrigation equipments, control, protection and measuring systems for the electricity and oil industry sectors.

During the week, 30 new contracts worth $44.1 million were placed on hold by the Committee.

In phases IV to IX that are currently active, the 661 Committee and the Office of the Iraq Programme (OIP) have approved 8,221 contracts, valued at $17.9 billion for the purchase of humanitarian supplies, including 2,100 contracts worth $4.8 billion processed by OIP under “fast-track” procedures, based on pre-approved lists of supplies. In addition, the Committee has approved 2,584 contracts worth $1.42 billion for the purchase of oil industry spare parts and equipment, while OIP has “fast-tracked” another 256 contracts worth $226 million in this category. The “fast-track” procedures began to be implemented in March 2000.

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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