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24 July 2001  

Oil-for-Food Background Information


Weekly update

(14 - 20 July 2001)

Averaging a rate of 2.27 million barrels per day, Iraqi oil exports under the United Nations oil-for-food programme reached 15.9 million barrels in the week 14 – 20 July.  The week’s exports accrued an estimated revenue of  €342 million (euros) or $300 million at current prices and rate of exchange.  There were a total of 10 loadings, five each at the two authorized terminals of Mina al-Bakr, with 8.6 million barrels of oil and Ceyhan, with 7.3 million barrels.  The average price of Iraqi crude oil during the week was approximately €23.65 or $20.45 per barrel.

In the course of the week, the United Nations oil overseers approved seven new oil purchase contracts for 18 million barrels of Basrah Light and 10 million barrels of Kirkuk crude.  In current phase X of the programme, which runs from 4 July to 30 November 2001, there are 59 approved oil contracts, amounting to 199 million barrels of oil, 130 million of which are for Basrah Light and 69 million for Kirkuk.  So far, Iraq has exported 22.7 million barrels of oil for an estimated €485 million or $426 million in revenue at current prices and rate of exchange.

Since the beginning of the programme on 10 December 1996, Iraqi oil exports of over 2.5 billion barrels have generated an estimated revenue of some $38.6 billion and €7.2 billion (or $6 billion at current prices and rate of exchange).  With the adoption of Security Council resolution 1330 (2000) on 5 December 2000, 72 per cent of the oil revenue funds the humanitarian programme in Iraq, 59 per cent of which is for the 15 central and southern governorates and 13 per cent for the three northern governorates of Iraq.

As at 20 July 2001, more than $13.5 billion worth of humanitarian supplies and $793 million worth of oil industry spare parts and equipment had been delivered to Iraq since the start of the programme.  Another $10.6 billion worth of supplies, including $1.1 billion worth of oil spare parts and equipment, were in the production and delivery pipeline.

The Security Council’s 661 sanctions committee has approved 11,830 contracts worth $18.6 billion for humanitarian supplies for Iraq since the beginning of the programme, while the Office of the Iraq Programme (OIP) has processed another 2,474 contracts under “fast-track” procedures worth $6.2 billion, based on pre-approved lists of supplies.  In addition, the Committee has approved 2,684 contracts worth $1.5 billion for the purchase of oil industry spare parts and equipment, with OIP having “fast-tracked” another 404 contracts worth $381 million in this category of goods.  “Fast-tracking” began in March 2000.

The value of contracts placed on hold by the 661 Committee rose slightly to $3.47 billion.  During the week the Committee released from hold 11 contracts worth $22 million, while placing on hold 42 new contracts valued at $78.4 million.  In all, 1,433 contracts are currently on hold, 984 of which worth just over $3 billion are for humanitarian supplies and 449 contracts worth $443 million for oil industry spare parts and equipment.

As at 19 July, $2 billion and €1.4 billion 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