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9 October 2001  

Oil-for-Food Background Information


Weekly Update

(29 September - 5 October 2001)

Iraq doubled its oil exports in the week ending on 5 October from the previous week’s total of nine million barrels. Averaging 2.57 million barrels per day, the exports amounted to 18 million barrels. There were 12 loadings at the two authorized loading terminals of Mina al-Bakr and Ceyhan, seven of which were from the former, with 12 million barrels of oil, and five from the latter, with six million barrels. The revenue generated from the week’s exports, under the United Nations oil-for-food programme, was an estimated €357 million (euros) or $328 million, at current prices and rate of exchange. The average price of Iraqi crude oil during the week was approximately €19.85 or $18.20 per barrel.

In current phase X, which runs from 4 July to 30 November 2001, some 180.5 million barrels of oil have been lifted so far, raising an estimated €3.9 billion or $3.6 billion in revenue. The United Nations oil overseers have approved 130 oil purchase contracts for this phase, including two new contracts during this week. These contracts cover 362 million barrels of oil, 221 million of which are for Basrah Light and 141 million for Kirkuk crude.

Since the beginning of the programme on 10 December 1996, Iraq has exported 2.68 billion barrels of oil for some $38.6 billion and €10.6 billion ($9.3 billion) in estimated revenue. The United States dollar was replaced with the euro for Iraqi oil purchases in early November 2000, at the request of the Government of Iraq and with the consent of the Security Council’s 661 sanctions committee. 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.

Throughout the programme, over $28.7 billion worth of humanitarian supply contracts, including $2.3 billion worth of contracts for oil industry spare parts and equipment, have been both approved by the 661 Committee and “fast-tracked” by the Office of the Iraq Programme (OIP). So far, over $15.1 billion worth of humanitarian supplies and $922 million worth of oil industry spare parts and equipment have been delivered to Iraq, while another $11.3 billion worth of humanitarian supplies and $1.4 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 remained almost constant at $3.9 billion. During the week, the Committee released from hold 36 contracts, worth $58.1 million, and placed on hold 30 new contracts, worth $63 million. A total of 1,456 contracts were on hold, including 999 for humanitarian supplies, worth almost $3.4 billion, and 457 contracts for industry spare parts and equipment, worth $522 million.

As at 4 October, about $1.5 billion and €769 million in unused funds were available in the United Nations escrow account for the issuance of additional letters of credit fr 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