Office of the Iraq Programme Oil for Food

18 September 2001

Oil-for-Food Background Information

Weekly update

(8 - 14 September 2001)

The issue of pricing mechanisms for Iraqi crude oil deliveries to the United States market in September has remained unresolved. At the average rate of 1.9 million barrels per day, Iraq exported a total of 13.6 million barrels of oil in the week 8 - 14 September, under the United Nations oil-for-food programme. There were five liftings each from the two authorized loading terminals of Mina al-Bakr and Ceyhan, with 8.5 million barrels from the former and 5.1 from the latter.

The average price of Iraqi crude oil during the week was approximately €26.70 or $24.35 per barrel. At current prices and rates of exchange, an estimated €364 million (euros) or $336 million in revenue was generated from the week’s exports, bringing the total estimated revenue in current phase X to €3.3 billion or $3 billion. Since the start of phase X on 4 July, which ends on 30 November 2001, Iraqi oil exports have totaled 137.1 million barrels. The United Nations oil overseers have, so far, approved 114 oil purchase contracts for this phase, including four during the week in review. The quantity of oil covered by these contracts amounts to 310 million barrels, 187 million of which are for Basrah Light and 123 million for Kirkuk crude.

Iraqi oil exports of some 2.6 billion barrels have raised an estimated $38.6 billion and €10 billion ($8.7 billion) in revenue since the beginning of the Programme on 10 December 1996. 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.

Also since the start of the Programme, $25.6 billion worth of contracts for humanitarian supplies and another $2.2 billion worth of contracts for oil industry spare parts and equipment have been approved by the Security Council’s 661 Sanctions Committee and “fast-tracked” by the Office of the Iraq Programme (OIP). Of these, more than $14.6 billion worth of humanitarian supplies and $900 million worth of oil industry spare parts and equipment have been delivered to Iraq. Another $11 billion worth of humanitarian supplies and $1.3 billion worth of oil spare parts and equipment are in the production and delivery pipeline.

The value of contracts placed on hold by the 661 Committee rose further to just over $4 billion, covering 1,529 contracts. Of this total, 1,057 contracts, worth over $3.5 billion, were for humanitarian supplies and 472 contracts, worth $524 million, were for oil industry spare parts and equipment. During the week, the Committee released from hold 17 contracts, worth $46 million, and placed on hold 26 new contracts, valued at $176 million.

As at 14 September, over $1.2 billion and €655 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.

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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

Oil-for-Food Background Information		Weekly update (8 - 14 September 2001) The issue of pricing mechanisms for Iraqi crude oil deliveries to the United States market in September has remained unresolved. At the average rate of 1.9 million barrels per day, Iraq exported a total of 13.6 million barrels of oil in the week 8 - 14 September, under the United Nations oil-for-food programme. There were five liftings each from the two authorized loading terminals of Mina al-Bakr and Ceyhan, with 8.5 million barrels from the former and 5.1 from the latter. The average price of Iraqi crude oil during the week was approximately €26.70 or $24.35 per barrel. At current prices and rates of exchange, an estimated €364 million (euros) or $336 million in revenue was generated from the week’s exports, bringing the total estimated revenue in current phase X to €3.3 billion or $3 billion. Since the start of phase X on 4 July, which ends on 30 November 2001, Iraqi oil exports have totaled 137.1 million barrels. The United Nations oil overseers have, so far, approved 114 oil purchase contracts for this phase, including four during the week in review. The quantity of oil covered by these contracts amounts to 310 million barrels, 187 million of which are for Basrah Light and 123 million for Kirkuk crude. Iraqi oil exports of some 2.6 billion barrels have raised an estimated $38.6 billion and €10 billion ($8.7 billion) in revenue since the beginning of the Programme on 10 December 1996. 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. Also since the start of the Programme, $25.6 billion worth of contracts for humanitarian supplies and another $2.2 billion worth of contracts for oil industry spare parts and equipment have been approved by the Security Council’s 661 Sanctions Committee and “fast-tracked” by the Office of the Iraq Programme (OIP). Of these, more than $14.6 billion worth of humanitarian supplies and $900 million worth of oil industry spare parts and equipment have been delivered to Iraq. Another $11 billion worth of humanitarian supplies and $1.3 billion worth of oil spare parts and equipment are in the production and delivery pipeline. The value of contracts placed on hold by the 661 Committee rose further to just over $4 billion, covering 1,529 contracts. Of this total, 1,057 contracts, worth over $3.5 billion, were for humanitarian supplies and 472 contracts, worth $524 million, were for oil industry spare parts and equipment. During the week, the Committee released from hold 17 contracts, worth $46 million, and placed on hold 26 new contracts, valued at $176 million. As at 14 September, over $1.2 billion and €655 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.
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