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21 May 2002
Oil-for-Food Background Information


Weekly Update

(11 - 17 May 2002)

 There were 6.9 million barrels of oil lifted through five loadings in the first week of exports, following Iraq’s termination of its month-long self-imposed stoppage.  The loading terminal of Mina al-Bakr witnessed two loadings, with three million barrels of oil, while there were three loadings from Ceyhan, with 3.9 million barrels.  At the average price of approximately €26.85 (euros) or $24.45 per barrel, the week’s exports netted an estimated €185 million or $169 million in revenue, at current prices and rate of exchange.  

The United Nations oil overseers approved four new oil purchase contracts, bringing their total to 157, covering 373 million barrels of oil, of which 214 million barrels are for Basrah Light and 159 million barrels for Kirkuk crude.  So far in the current phase XI of the programme, which ends on 29 May, Iraqi oil exports have totaled 214 million barrels, for an estimated revenue of €4.54 billion or $4.15 billion. 

Some three billion barrels of oil have been exported by Iraq since the beginning of the programme on 10 December 1996, generating an estimated $38.6 billion and €17.2 billion ($15.1 billion) in revenue.  The humanitarian programme receives 72 per cent of the oil proceeds, with 59 per cent allocated to the 15 central and southern governorates and 13 per cent to the three northern governorates. 

The programme continues to face a funding shortfall, with 763 humanitarian supply contracts, worth over $1.9 billion, while approved, await funding.  

Since the start of the programme, the Security Council’s 661 sanctions committee and the Office of the Iraq Programme (OIP) have approved and “fast-tracked” some $34.9 billion worth of humanitarian supply and equipment contracts, including $3.1 billion worth of oil industry spare parts and equipment.  To date, about $22 billion worth of supplies and equipment have been delivered to Iraq, including $1.4 billion worth oil spare parts and equipment.  An additional $10.1 billion worth of supplies and equipment, for which funds have been available, are in the production and delivery pipeline, including $1.7 billion worth of oil industry equipment.  

During the week in review, the 661 Committee released from hold 21 contracts, worth $36.6 million, while placing on hold 20 new contracts, worth $18.5 million.  The total value of “holds” stands at about $5.2 billion, covering 2,140 contracts for the purchase of various humanitarian supplies and equipment.  The total comprises 1,454 humanitarian supply contracts, worth almost $4.5 billion, and 686 contracts, worth $718 million, for oil industry spare parts and equipment.   

Paragraph 18 of the new set of procedures for the processing and review of contracts for humanitarian supplies and equipment under Security Council resolution 1409 (2002) requires that contracts currently on hold be divided into two categories.  The first category would comprise contracts that contain resolution 1051 item(s), as determined by the United Nations Secretariat experts, which will be returned to the submitting Mission or United Nations agency for possible re-submission under the new procedures.  The second category would include all other contracts currently on hold and will be re-circulated by OIP under the new procedures.  It is foreseen that upon the completion of these processes, there will no longer be contracts on hold.       

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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