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4 September 2002
Oil-for-Food Background Information


Weekly Update

(24-30 August 2002)

With no loadings from Mina al-Bakr since 21 August 2002, Iraqi oil exports under the United Nations oil-for-food programme averaged 700, 000 barrels per day, thus, reaching a total of 4.9 million barrels during the week ending 30 August. Completed in five loadings, the week’s exports yielded an estimated revenue of €125 million (euros) or $123 million, at current prices and rate of exchange, bringing the total estimated revenue in current phase XII of the programme to €2.18 billion or $2.1 billion. The average price of Iraqi crude oil was approximately €25.75 or $25.20 per barrel.

Phase XII runs from 30 May to 25 November 2002. So far in this phase, total exports of Iraqi crude have amounted to 89 million barrels of oil out of 346 million barrels approved by the United Nations oil overseers under 154 oil purchase contracts. 

Owing to a cumulative revenue shortfall since phase VIII of the programme, 1,135 approved humanitarian supply contracts, worth about $2.1 billion, remain without available funds. The sectors affected by the revenue shortfall are: electricity with $392 million; agriculture with $342 million; food handling with $319 million; housing with $291 million; water and sanitation with $268 million; health with $233 million; education with $129 million; telecommunications and transportation with $111 million, and; food with $24 million.

Since the beginning of the programme on 10 December 1996, Iraq has exported some 3.1 billion barrels of oil at an estimated $38.6 billion and €19.7 ($17.7 billion) in revenue.  With 72 percent of the oil proceeds allocated to the humanitarian programme, some  $36.8 billion worth of contracts for the purchase of various humanitarian supplies and equipment have been approved by the 661 committee and by OIP, including about $3.3 billion worth of oil industry spare parts and equipment. So far, about $24.2 billion worth of supplies and equipment have been delivered to Iraq, including $1.5 billion worth oil spare parts and equipment, while another $9.7 billion worth of supplies and equipment, for which funds have been available, are in the production and delivery pipeline, including $1.8 billion worth of oil industry equipment.  

With the implementation of the new set of procedures under resolution 1409 (2002) as of 15 July 2002, some $220 million worth of supplies under 196 contracts previously on hold by the 661 Committee, have now been re-assessed as not to contain Goods Review List (GRL) items and therefore, approved by OIP. There remain 1,664 humanitarian supply contracts on hold, worth about $4.2 billion. Of these 1,145 contracts worth about $3.6 billion are for humanitarian supplies and 519 contracts worth $623 million are for oil industry spare parts and equipment.

Paragraph 18 of the new set of procedures under resolution 1409 (2002) divides contracts on hold into two categories. The first category comprises contracts that contain “dual use” item(s), as determined by the United Nations Secretariat experts, which are returned to the submitting Mission or United Nations agency for possible re-submission under the new procedures. The second category includes all other contracts on hold which are re-circulated by OIP under the new procedures. The re-circulation of these contracts will be completed by 15 September.  It is foreseen that with the end of this process, 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