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7 May 2002
Oil-for-Food Background Information


Weekly Update

(27 April - 3 May 2002)

There have been no Iraqi oil exports under the United Nations oil-for-food programme since 8 April 2002, following Iraq’s announced suspension of its oil exports.

The current phase XI of the programme ends on 29 May 2002. Prior to the halt in exports, the estimated revenue netted from the lifting of 207 million barrels of oil in this phase stood at €4.36 billion (euros) or $3.96 billion, at current prices and rate of exchange.

Revenue lost from Iraq’s 30-day stoppage of its exports is estimated at about $1.2 billion. As a result of a funding shortfall, 1,284 contracts for the purchase of various humanitarian supplies and equipment, valued at almost $3.1 billion, although approved, could not be funded. This includes 374 contracts, worth $860 million, in current phase XI.

Iraq has exported some 3 billion barrels of oil, for an estimated $38.6 billion and €17 billion ($14.9 billion) in revenue since the beginning of the programme on 10 December 1996. With 72 per cent of the oil revenue being allocated to the humanitarian programme, some $34.6 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 $3.1 billion worth of contracts for oil industry spare parts and equipment. So far, about $21.5 billion worth of humanitarian supplies and equipment have been delivered to Iraq, including $1.3 billion worth of oil industry equipment. Another $10 billion worth of humanitarian supplies, for which funds were available, including $1.7 billion worth of oil industry equipment, are in the production and delivery pipeline.

During the week in review, the 661 Committee released from hold 23 contracts, worth $62.5 million, while placing on hold 41 new contracts, worth $173 million. Altogether, the total value of “holds” stood at over $5.2 billion, covering 2,123 contracts for the purchase of various humanitarian supplies and equipment. Of this total, 1,453 contracts, worth about $4.5 billion, were for humanitarian supplies and 670 contracts, worth $726 million, were for oil industry spare parts and equipment.

There were 234 contracts, valued at $395 million, in the category of “inactive holds”, 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 474 contracts, worth about $1.3 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