Office of the Iraq Programme Oil for Food

20 November 2001

Oil-for-Food Background Information

Weekly Update

(10 - 16 November 2001)

Continuing with the erratic oil export levels under the United Nations oil-for-food programme, Iraq lifted 18.6 million barrels of oil in the week ending 16 November, registering a considerable surge compared with the previous week’s total of 10.9 million barrels. There were 11 loadings from the two authorized terminals of Mina al-Bakr and Ceyhan – six from the former, with 12.5 million barrels of oil, and five from the latter, with 6.1 million barrels.

At an average price of approximately €17.70 (euros) or $15.65 per barrel, the week’s exports raised an estimated €330 million or $290 million in revenue, based on current prices and rate of exchange, bringing the total estimated revenue in the current phase X of the programme to €5.35 billion or $4.73 billion. There are now 144 approved oil purchase contracts for 396 million barrels of oil in this phase, including two new contracts approved by the United Nations oil overseers during the week in review. Of the total volume, 240 million barrels are for Basrah Light and 156 million barrels for Kirkuk crude. So far in phase X, Iraq has exported 270.1 million barrels of oil. Phase X ends on 30 November 2001.

Since the beginning of the programme on 10 December 1996, some $38.6 billion and €12 billion ($10.4 billion) in estimated revenue has been generated from the export of 2.77 billion barrels of oil. 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.

Concurrently, almost $29.9 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 $2.6 billion worth of contracts for oil industry spare parts and equipment. Thus far, almost $16.2 billion worth of humanitarian supplies and $993 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.

At the end of the week, the value of contracts placed on hold by the Committee stood at $4.2 billion, covering some 1,433 contracts for various supplies and equipment, including 159 contracts, worth $343.8 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 to allow proper evaluation, are categorized as “inactive holds” where the requested information has not been 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 280 contracts, worth $750 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 seven contracts, worth $1.7 million, while placing on hold 33 new contracts, worth $71.3 million. In all, 953 humanitarian supply contracts, worth $3.36 billion, and 490 oil industry equipment contracts, worth $499 million, were in the “active holds” category.

As at 16 November, about $1.6 billion and €486 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

Oil-for-Food Background Information		Weekly Update (10 - 16 November 2001) Continuing with the erratic oil export levels under the United Nations oil-for-food programme, Iraq lifted 18.6 million barrels of oil in the week ending 16 November, registering a considerable surge compared with the previous week’s total of 10.9 million barrels. There were 11 loadings from the two authorized terminals of Mina al-Bakr and Ceyhan – six from the former, with 12.5 million barrels of oil, and five from the latter, with 6.1 million barrels. At an average price of approximately €17.70 (euros) or $15.65 per barrel, the week’s exports raised an estimated €330 million or $290 million in revenue, based on current prices and rate of exchange, bringing the total estimated revenue in the current phase X of the programme to €5.35 billion or $4.73 billion. There are now 144 approved oil purchase contracts for 396 million barrels of oil in this phase, including two new contracts approved by the United Nations oil overseers during the week in review. Of the total volume, 240 million barrels are for Basrah Light and 156 million barrels for Kirkuk crude. So far in phase X, Iraq has exported 270.1 million barrels of oil. Phase X ends on 30 November 2001. Since the beginning of the programme on 10 December 1996, some $38.6 billion and €12 billion ($10.4 billion) in estimated revenue has been generated from the export of 2.77 billion barrels of oil. 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. Concurrently, almost $29.9 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 $2.6 billion worth of contracts for oil industry spare parts and equipment. Thus far, almost $16.2 billion worth of humanitarian supplies and $993 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. At the end of the week, the value of contracts placed on hold by the Committee stood at $4.2 billion, covering some 1,433 contracts for various supplies and equipment, including 159 contracts, worth $343.8 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 to allow proper evaluation, are categorized as “inactive holds” where the requested information has not been 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 280 contracts, worth $750 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 seven contracts, worth $1.7 million, while placing on hold 33 new contracts, worth $71.3 million. In all, 953 humanitarian supply contracts, worth $3.36 billion, and 490 oil industry equipment contracts, worth $499 million, were in the “active holds” category. As at 16 November, about $1.6 billion and €486 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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