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23 April 2002
Oil-for-Food Background Information


Weekly Update

(13 - 19 April 2002) 

Iraq has maintained its suspension of oil exports under the United Nations oil-for-food programme.  The last loading took place on 8 April 2002.  The average price of Iraqi crude oil during the week was approximately €25.50 (euros) or $22.60 per barrel. 

The estimated revenue netted from the export of 207 million barrels of oil in current phase XI of the programme is €4.37 billion or $3.88 billion, at current prices and rate of exchange.  Phase XI ends on 29 May 2002.  The United Nations oil overseers have approved 152 oil purchase contracts for 360 million barrels of oil in this phase, including one new contract approved during the week in review. 

Owing to a funding shortfall, 1,062 approved contracts for the purchase of various humanitarian supplies and equipment, worth over $2.5 billion, could not be funded, including 205 contracts, valued at $485 million, in current phase XI.  Revenue loss, as a result of the suspension of oil exports, is estimated at $1.3 billion. 

An estimated $38.6 billion and €17 billion ($14.9 billion) in revenue has been generated from the export of some 3 billion barrels of oil since the start of the programme on 10 December 1996.  With 72 per cent of the oil revenue being allocated to the humanitarian programme, some $34 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 some $3 billion worth of contracts for oil industry spare parts and equipment.  So far, approximately $21.2 billion worth of humanitarian supplies and equipment have been delivered to Iraq, including $1.3 billion worth of oil industry equipment, while another $12.8 billion worth of humanitarian supplies, including $1.8 billion worth of oil industry equipment, are in the production and delivery pipeline. 

The total value of contracts placed on hold by 661 Committee stood at $5.2 billion, covering 2,119 humanitarian supply and equipment purchase contracts, of which 1,454 contracts, worth about $4.5 billion, were for humanitarian supplies and 665 contracts, worth $724 million, were for oil industry spare parts and equipment.  During the week, the Committee released from hold 10 contracts, worth $37 million, while placing on hold 51 new contracts, valued at $139 million. 

In the category of “inactive holds” there were 223 contracts, valued at $426 million, for which 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”, there were 519 contracts, worth more than $1.6 billion, for which there was no feedback from the holding Committee member(s) in excess of 60 days, despite the provision of additional information by suppliers.

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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