Header Logo


7 August 2001  

Oil-for-Food Background Information


Weekly update

(28 July - 3 August 2001)

On 1 August, the Secretary-General approved the distribution plan, submitted by the Government of Iraq, for the current phase X of the programme.  The phase is in effect from 4 July to 30 November.  The plan projects a budget of $5.5 billion for the humanitarian programme, divided between 12 sectors countrywide, including an allocation of $600 million for oil industry spare parts and equipment and $384 million to meet the needs of especially vulnerable groups.  Over $1.27 billion is earmarked for the food sector, while $250 million is set aside for the purchase of medicines and medical supplies.

In the week leading to 3 August, Iraq exported 17 million barrels of oil, at the average rate of 2.4 million barrels per day.  The exports generated an estimated €404 million (euros) or $356 million in revenue at current prices and rate of exchange.  Of the total nine loadings, six were from Mina al-Bakr terminal, with 11 million barrels of oil and three from Ceyhan, with 6 million barrels.  The average price of Iraqi crude oil during the week was approximately €25 or $21.96 per barrel.

Four new oil purchase contracts were approved by the United Nations oil overseers for five million barrels of Basrah Light and four million barrels of Kirkuk crude.  In phase X of the programme, there are 69 approved oil contracts, amounting to 236 million barrels of oil, 152 million of which are for Basrah Light and 84 million for Kirkuk.  Iraq has exported 51.7 million barrels of oil, so far into phase X, for an estimated revenue of €1.24 billion or $1.1 billion, at current prices and rate of exchange.

Since the beginning of the programme on 10 December 1996, Iraqi oil exports of over 2.55 billion barrels have raised an estimated revenue of some $38.6 billion and €7.9 billion (or $6.7 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 proceeds fund 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.

There was a drop in the total value of contracts placed on hold by the Security Council’s 661 sanctions committee, with the release from hold of 78 contracts worth $265 million.  At the end of the week, the value of “holds” stood at $3.378 billion, compared with the previous week’s total of $3.5 billion. Two large-value “released” contracts, one worth $75.6 million for gas turbines in the electricity sector and another worth $59.2 million for 1,000 water tankers, contributed to this.  Concurrently, 51 new contracts worth $127 million were placed on hold by the Committee.  In all, 1,418 contracts are on hold, of which 969 worth over $2.9 billion are for humanitarian supplies and 449 contracts worth $434 million for oil industry spare parts and equipment.  Water and sanitation, electricity and education have the highest volume of contracts on hold in their respective sectors.

Since the start of the programme, $24.8 billion worth of contracts for humanitarian supplies and over $2 billion worth of contracts for oil industry spare parts and equipment have been approved by the Committee and “fast-tracked” by the Office of the Iraq Programme (OIP).  Of these, more than $13.7 billion worth of humanitarian supplies and $807 million worth of oil industry spare parts and equipment have been delivered to Iraq.  Another $11.1 billion worth of supplies, including $1.2 billion worth of oil spare parts and equipment, are in the production and delivery pipeline.

As at 3 August, $1.8 billion and €977 million 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.

OIP Home Page

Back to Top

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