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12 June 2001  

Oil-for-Food Background Information


Weekly update

(2 - 8 June 2001)

Iraq continues its suspension of oil exports under the United Nations oil-for-food programme.

In the week ending 8 June, 7.2 million barrels of oil were lifted through four loadings, at an average of 1.02 million barrels a day. Of the total loadings, three were at Mina-al-Bakr and one at Ceyhan terminals. The week’s oil exports raised an estimated €205 million (euros) in revenue at current prices. The average price of Iraqi crude oil during the week was approximately $24.14 or €28.43 (euros) per barrel.

In current phase IX, Iraq has exported 293 million barrels of oil, so far, earning over €6.7 billion (euros) in revenue. Since the beginning of the oil-for-food programme on 10 December 1996, Iraqi oil exports have totaled approximately 2,500 million barrels for an estimated revenue of $38.6 billion and €6.7 billion (euros).

During the week, the United Nations oil overseers, on behalf of the Security Council’s 661 sanctions Committee, approved one more oil purchase contract, for two million barrels of Basrah Light crude for the United States market. There are now 174 approved contracts for the lifting of over 571 million barrels of oil, 351 million barrels of which are for Basrah Light and 220 million for Kirkuk.

Since the beginning of the programme, the 661 Committee has approved 8,159 contracts worth $16.83 billion for the purchase of humanitarian supplies, while another 2,114 contracts worth $4.81 billion were processed by the Office of the Iraq Programme (OIP) under "fast track" procedures, based on pre-approved lists of supplies. In addition, the Committee has approved 2,592 contracts worth 1.43 billion for the purchase of oil industry spare parts and equipment, while OIP has "fast tracked" another 277 contracts worth $245 million for this category. The "fast track" procedures began to be implemented in March 2000.

The total value of contracts placed on hold by the Security Council's 661 sanctions committee increased slightly to $3.05 billion, representing 14.3 per cent of the total value circulated to the Committee. A single large application placed on hold last week was in the oil sector, thus contributing to the increase both generally and in the oil spare parts and equipment sector. Of the total 1,323 contracts on hold, 865 contracts worth over $2.6 billion were for humanitarian supplies, while 458 contracts worth over $428 million were for oil industry spare parts and equipment.

In the course of the week, the Committee released five contracts, and placed 28 contracts worth $81.2 million on hold.

As at 8 June 2001, approximately $2.23 billion and over €1.97 billion (euros) in unencumbered 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