Header Logo


14 August 2001  

Oil-for-Food Background Information


Weekly update

(4 - 10 August 2001)

Iraqi oil exports under the United Nations oil-for-food programme were down to 13.9 million barrels in the week leading to 10 August, from the previous week’s total of 17 million barrels. Revenue generated from the week’s exports was an estimated €296 million (euros) or $265 million at current prices and rate of exchange. There were a total of ten crude oil loadings from the two authorized terminals - four from Mina al-Bakr with 7.3 million barrels and six from Ceyhan, with 6.6 million barrels. The average price of Iraqi crude oil during the week was approximately €25.80 or $22.77 per barrel.

In the course of the week, the United Nations oil overseers approved six new oil purchase contracts for 12 million barrels of Basrah Light and five million barrels of Kirkuk crude. In current phase X of the programme, which is in effect from 4 July to 30 November 2001, there are 78 approved oil purchase contracts, amounting to 247 million barrels of oil, 155 million of which are for Basrah Light and 92 million for Kirkuk. Thus far into the phase, Iraq has exported 65.6 million barrels of oil, for an estimated revenue of €1.56 billion or $1.39 billion, at current prices and rate of exchange.

Since the beginning of the programme on 10 December 1996, Iraqi oil exports of over 2.56 billion barrels have raised an estimated revenue of some $38.6 billion and €8.2 billion (or about $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.

The Security Council’s 661 sanctions committee released from hold 15 contracts worth $77.5 million, including five high-value contracts in the telecommunications sector worth $67.8 million. However, 51 new contracts worth $208.7 million were placed on hold by the Committee, raising the total value of contracts on hold by the end of the week to $3.5 billion. Altogether, 1,450 contracts are on hold, of which 988 worth over $3 billion are for humanitarian supplies and 462 contracts worth $462 million for oil industry spare parts and equipment. The newly placed “holds” include a large number of trucks and various types of vehicles.

Since the start of the programme, humanitarian supply contracts valued at $25.2 billion and over $2 billion worth of contracts for oil industry spare parts and equipment have been approved by the 661 Committee and “fast-tracked” by the Office of the Iraq Programme (OIP). Of these, more than $13.9 billion worth of humanitarian supplies and $834 million worth of oil industry spare parts and equipment have been delivered to Iraq. Another $12.5 billion worth of supplies, including $1.2 billion worth of oil spare parts and equipment, are in the production and delivery pipeline.

As at 10 August, over $1.7 billion and €776 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