Header Logo


26 March 2002
Oil-for-Food Background Information


Weekly Update

(16 - 22 March 2002)

Averaging less than one million barrels per day, Iraq’s oil exports saw a steep decline to 6.7 million barrels in the week of 16 - 22 March 2002 under the United Nations oil-for-food programme. The week’s exports, netting an estimated €170 million (euros) or $150 million in revenue, at current prices and rate of exchange, were completed through four loadings from Mina al-Bakr terminal only. The last loading from the second authorized loading terminal of Ceyhan was witnessed on 10 March 2002. The average price of Iraqi crude oil during the reporting period was approximately €25.10 or $22.10 per barrel.

The United Nations oil overseers approved two new oil purchase contracts, bringing the total number of such contracts in current phase XI of the programme to 137. The volume of oil covered by these contracts is approximately 330 million barrels, of which 190 million barrels are for Basrah Light and 140 million barrels for Kirkuk crude. Phase XI runs from 1 December 2001 to 29 May 2002. So far in this phase, Iraq has exported 174.1 million barrels of oil, for an estimated revenue of about €3.6 billion or $3.1 billion. Since the beginning of the programme on 10 December 1996, Iraqi oil exports of some 2.97 billion barrels have yielded approximately $38.6 billion and €16 billion ($14 billion) in estimated revenue.

With 72 per cent of the oil export revenue allocated to the humanitarian programme, some $32.9 billion worth of humanitarian supply contracts have been approved by the Security Council’s 661 sanctions committee and “fast-tracked” by the Office of the Iraq Programme (OIP), including almost $3 billion worth of contracts for oil industry spare parts and equipment. To date, some $20.2 billion worth of humanitarian supplies and equipment have been delivered to Iraq, including $1.2 billion worth of oil industry equipment, while another $10.9 billion worth of humanitarian supplies and $1.8 billion worth of oil industry equipment are in the production and delivery pipeline.

The total value of “holds” witnessed a slight decline of $20 million, bringing it to just under $5.3 billion. The volume covered 2,056 contracts for the purchase of various humanitarian supplies and equipment, of which 1,414 contracts, valued at about $4.6 billion, were for humanitarian supplies and 638 contracts, worth $692 million, were for oil industry spare parts and equipment.

About $1.7 billion and €200 million were available in the United Nations Iraq Account. However, these funds have been earmarked for oil spare parts and equipment and for the purchase of humanitarian supplies under special allocation aimed at addressing the needs of especially vulnerable groups. As a result of a funding shortfall, although approved, some 807 contracts, worth over $1.7 billion, could not be funded.

During the week, the 661 Committee released from hold 45 contracts, worth $65 million, while placing on hold 21 new contracts, worth $52 million.

There was a small increase in the value of contracts in the category of “inactive holds”, which stood at $467 million, for which the suppliers had not provided the additional technical information requested by the “holding” Committee member(s) in over 60 days. At the same time, in the category of “active holds”, the value of contracts pending feedback from the holding missions in excess of 60 days following the submission of the requested additional information by the suppliers, decreased substantially from just over $2 billion to about $1.7 billion.

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