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11 June 2002
Oil-for-Food Background Information


Weekly Update

(1 – 7 June 2002) 

With only two liftings, both from the authorized loading terminal of Ceyhan, Iraqi oil exports plunged from the previous week’s high of 15.3 million barrels to merely 2.6 million barrels in the week ending 7 June, earning an estimated €60 million (euros) or $55 million in revenue, at current prices and rate of exchange.  The average price of Iraqi crude oil during the week was approximately €23.10 or $21.70 per barrel.  

In current phase XII of the programme, which began on 30 May and will end on 25 November 2002, the total volume of oil exported thus far amounts to 10.9 million barrels, having netted an estimated revenue of €251 million or $237 million.  During the week in review, the United Nations oil overseers approved 12 new oil purchase contracts, bringing the total to 75.  The corresponding volume of oil amounts to 136 million barrels, of which 72 million barrels are for Basrah Light and 64 million barrels for Kirkuk crude. 

The funding shortfall, that continues to plague the programme, has resulted in 926 humanitarian supply contracts, worth about $2.28 billion, lacking in funds, although already approved by the United Nations. The affected sectors, in the order of the value of approved contracts without funds, are food handling with about $389 million, followed by housing with $350 million, electricity with $330 million, food with $327 million, communication/transportation with $236 million, agriculture with $234 million, health with $151 million, water and sanitation with $120 million, education with $99 million and oil spare parts/equpment with $42 million.

 Iraq has exported more than 3 billion barrels of oil at an estimated $38.6 billion and €17.8 billion ($15.8 billion) in revenue, since the beginning of the programme on 10 December 1996.  With 72 percent of the oil proceeds allocated to the humanitarian programme, some $35.3 billion worth of contracts for the purchase of various humanitarian supplies and equipment have been both approved by the Security Council’s 661 sanctions committee and “fast-tracked” by the Office of the Iraq Programme (OIP), including about $3.2 billion worth of oil industry spare parts and equipment. To date, over $22.6 billion worth of supplies and equipment have been delivered to Iraq, including $1.4 billion worth oil spare parts and equipment, while another $10.5 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, the 661 Committee released from hold 6 contracts worth $33.4 million, while it placed on hold 31 new contracts worth $47.7 million.  There are currently 2,132 contracts on hold for the purchase of various humanitarian supplies and equipment, valued at slightly over $5.2 billion.  Of these, 1,452 contracts worth about $4.5 billion are for humanitarian supplies and 680 contracts worth $738 million are 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 “dual use” 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