Header Logo


16 October 2001  

Oil-for-Food Background Information


Weekly Update

(6 - 12 October 2001)

At the average rate of 2.1 million barrels per day, Iraq exported 14.7 million barrels of oil in the week ending 12 October, a drop from the previous week’s high of 18 million barrels. There were five loadings each at the two authorized loading terminals of Mina al-Bakr and Ceyhan, with 8.7 million barrels of oil from the former, and six million barrels from the latter. The week’s exports generated another €292 million (euros) or $266 million in estimated revenue, at current prices and rate of exchange, bringing the total estimated revenue earned in current phase X of the programme to €4.2 billion or $3.8 billion. The average price of Iraqi crude oil during the week was approximately €19.90 or $18.15 per barrel.

The United Nations oil overseers have approved 131 oil purchase contracts for this phase, including one new contract during the week in review. The volume of oil covered by these contracts amounts to 364 million barrels, 221 million of which are for Basrah Light and 143 million for Kirkuk crude. So far into phase X, Iraqi oil exports have totaled 195.2 million barrels. Phase X runs from 4 July to 30 November 2001.

Iraq has raised some $38.6 billion and €10.9 billion ($9.5 billion) in estimated revenue since the beginning of the oil-for-food programme on 10 December 1996 from the export of almost 2.7 billion barrels of oil. 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.

Also since the start of the programme, about $28.8 billion worth of humanitarian supply contracts, including $2.4 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). Of this total, over $15.3 billion worth of humanitarian supplies and $931 million worth of oil industry spare parts and equipment have been delivered to Iraq, while another $11.1 billion worth of humanitarian supplies and $1.5 billion worth of oil spare parts and equipment are in the production and delivery pipeline.

The steady decline in the value of contracts placed on hold by the 661 Committee continued, standing at $3.85 billion at the end of the week, down from the previous week’s total of $3.9 billion. In all, 1,479 contracts were on hold, including 1,010 for humanitarian supplies, worth $3.35 billion, and 469 contracts for industry spare parts and equipment, worth $490 million. During the week, the Committee released from hold 11 contracts, worth $62.3 million, and placed on hold 37 new contracts, worth $47.3 million. The drop in the total value of “holds” was mainly the result of the release of a single high-value contract in the oil industry sector, worth $52 million.

As at 12 October, almost $1.5 billion and €830 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