Header Logo


2 April 2002
Oil-for-Food Background Information


Weekly Update

(23 - 29 March 2002)

At the average rate of over 2.3 million barrels a day, Iraq’s weekly oil exports ending on 29 March, regained ground at a total of 16.5 million barrels, generating an estimated €427 million (euros) or $375 million in revenue, at current prices and rate of exchange. The week’s exports were completed in nine loadings, six from Mina al-Bakr, with 12 million barrels, and three from Ceyhan, with 4.5 million barrels. The average price of Iraqi crude oil during the reporting period was approximately €25.9 or $22.7 per barrel.

There are now 143 approved oil purchase contracts for 344 million barrels of oil in the current phase XI of the oil-for-food programme, including six new contracts approved by the United Nations oil overseers during the week in review. Of the total volume of approved oil, 200 million barrels are for Basrah Light and 144 million barrels for Kirkuk crude. So far in phase XI, which ends on 29 May 2002, oil lifted amounts to 190.6 million barrels, for an estimated revenue of about €4 billion or $3.5 billion. This has brought the overall volume of Iraqi oil exports since the beginning of the programme on 10 December 1996 to some 2.99 billion barrels, which have in turn yielded approximately $38.6 billion and €16.7 billion ($14.5 billion) in revenue.

With a notable decrease of 5% or approximately $280 million, the total value of contracts placed on hold by the Security Council’s 661 sanctions committee continued its decline for the second consecutive week. Following the release from hold of several high-value contracts, including a contract in the electricity sector worth $105 million alone, the total value of “holds” stood at barely $5 billion. The latter figure covered 2,039 contracts for the purchase of various humanitarian supplies and equipment, of which 1,396 contracts, valued at about $4.3 billion, were for humanitarian supplies and 643 contracts, worth 693 million, were for oil industry spare parts and equipment.

During the week, the 661 Committee released from hold 43 contracts, worth $324 million, while placing on hold 29 new contracts, worth $44 million.

In the category of “inactive holds”, there were 229 contracts at $472 million for which the suppliers had not provided the additional technical information requested by the “holding” Committee member(s) in over 60 days. Also, in the category of “active holds”, the number of contracts pending feedback from the holding mission(s) in excess of 60 days despite the provision of additional information by the suppliers, decreased substantially and now stands at 566 contracts, worth some $1.6 billion.

With 72 per cent of the oil export revenue allocated to the humanitarian programme, some $33.3 billion worth of humanitarian supply contracts have been approved by the 661 Committee and “fast-tracked” by the Office of the Iraq Programme (OIP), including some $3 billion worth of contracts for oil industry spare parts and equipment. To date, approximately $20.4 billion worth of humanitarian supplies and equipment have been delivered to Iraq, including $1.2 billion worth of oil industry equipment, while another $11.1 billion worth of humanitarian supplies and $1.8 billion worth of oil industry equipment are in the production and delivery pipeline.

About $1.7 billion and €87 million were available in the United Nations Iraq Account, which however, have been earmarked for the purchase of oil spare parts and humanitarian supplies under special allocation aimed at addressing the needs of especially vulnerable groups. Owing to a continuing funding shortfall, 823 approved humanitarian supply purchase contracts, worth over $2 billion, could not be funded.

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