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13 November 2001  

Oil-for-Food Background Information


Weekly Update

(3 - 9 November 2001)

There was a further drop in the level of Iraqi oil exports under the United Nations oil-for-food programme in the week 3 - 9 November 2001. Averaging just over 1.5 million barrels per day, a total of 10.9 million barrels of oil were lifted through eight loadings. Of these, three loadings took place at Mina al-Bakr terminal, with 5.9 million barrels, and five at Ceyhan terminal, with 5 million barrels.

The average price of Iraqi crude oil was approximately €18.58 (euros) or $16.62 per barrel. An estimated €201 million or $179 million in revenue was generated from the week’s exports, based on current prices and rate of exchange, bringing the total revenue in the current phase X of the programme to €5.19 billion or $4.64 billion. The United Nations oil overseers have approved 142 oil purchase contracts for this phase, including three new contracts during the week in review. The volume of oil covered by these contracts amounts to 393 million barrels, of which 237 million barrels are for Basrah Light and 156 million for Kirkuk crude. Thus far in phase X, Iraq has exported 251.5 million barrels of oil. Phase X ends on 30 November 2001.

Some $38.6 billion and €11.9 billion ($10.3 billion) in estimated revenue has been raised from the export of 2.75 billion barrels of oil 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, almost $29.7 billion worth of humanitarian supply contracts have been both approved by the Security Council’s 661 sanctions committee and “fast-tracked” by the Office of the Iraq Programme (OIP), including $2.5 billion worth of contracts for oil industry spare parts and equipment. Of this total amount approved, almost $16 billion worth of humanitarian supplies and $977 million worth of oil industry spare parts and equipment have been delivered to Iraq, while another $11.1 billion worth of humanitarian supplies and $1.6 billion worth of oil spare parts and equipment are in the production and delivery pipeline.

The total value of contracts placed on hold by the Committee rose to $4.14 billion, covering some 1,388 contracts for various supplies and equipment, including 190 contracts, valued at $383 million, which were in the “inactive holds” category. Contracts that are placed on hold by the Committee that require additional technical information from the suppliers for their adequate evaluation, are categorized as “inactive holds” where the requested information is not provided by the suppliers in excess of 60 days. Once this information is received, the relevant contract is put back in the “active holds” category for decision by the holding Committee member(s). In the category of “active holds” there were 241 contracts, worth $662 million, for which although the suppliers had provided the requested information, the holding Committee member(s) had not made a final decision in excess of 60 days.

During the week, the Committee released from hold three contracts, worth $1.3 million, while placing on hold 36 new contracts, worth $84.6 million. Altogether, 918 humanitarian supply contracts, worth $3.27 billion, and 470 oil industry equipment contracts, worth $494 million, were in the “active holds” category.

As at 8 November, over $1.4 billion and €587 million in unused funds were available in the United Nations Iraq 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