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18 December 2001  

Oil-for-Food Background Information


Weekly Update

(8 - 14 December 2001)

Into the second week of phase XI, the level of Iraqi oil exports under the United Nations oil-for-food programme remained well below the average, registering a total of about 6.4 million barrels in the week ending 14 December 2001. There were only three loadings at the two authorized terminals of Mina al-Bakr and Ceyhan - two at the former, with 4.34 million barrels of oil, and one at the latter, with 2.04 million barrels. The week’s exports generated some €110 million (euros) or $100 million in estimated revenue, based on current prices and rate of exchange, raising the total estimated revenue in phase XI to €200 million or $180 million. The average price of Iraqi crude oil during the week was approximately €17.30 (euros) or $15.50 per barrel.

During the week, the United Nations oil overseers approved eight new oil purchase contracts for 15 million barrels of Basrah Light and five million barrels of Kirkuk crude. In current phase XI of the programme, which ends on 29 May 2002, there are now 39 approved such contracts for 74.3 million barrels of oil, of which 42.3 million barrels are for Basrah Light and 32 million barrels for Kirkuk crude.

Since the beginning of the programme on 10 December 1996, Iraqi oil exports have earned an estimated $38.6 billion and €12.9 billion ($11.2 billion) in revenue from the sale of over 2.8 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, some $30.6 billion worth of contracts for humanitarian supplies and equipment have been both approved by the Security Council’s 661 sanctions committee and “fast-tracked” by the Office of the Iraq Programme (OIP) since the start of the programme, including $2.7 billion worth of contracts for oil industry spare parts and equipment. The value of deliveries of humanitarian supplies and equipment to Iraq has reached $17.9 billion, including over $1 billion worth of oil industry equipment. Another $11 billion worth of humanitarian supplies and $1.7 billion worth of oil industry equipment are in the production and delivery pipeline.

The total value of contracts placed on hold by the 661 Committee continued to rise, standing at almost $4.63 billion. The “holds” covered 1,610 contracts for the purchase of various humanitarian supplies and equipment, including 1,072 contracts, worth $3.85 billion, for humanitarian supplies and 538 contracts, worth $527 million, for oil industry equipment. During the week, the Committee released from hold 14 contracts, worth $19.8 million. However, it placed on hold 57 new contracts, worth $140.6 million.

There were 161 contracts, worth $252.8 million, in the “inactive holds” category, for which the suppliers had not provided the requested additional technical information in excess of 60 days. In the category of “active holds” there were 353 contracts, worth $1.13 billion, 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.

As at 14 December, about $1.8 billion and €424 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