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12 November 2002
Oil-for-Food Background Information


Weekly Update

(2 - 8 November 2002)

Iraqi oil exports under the United Nations oil-for-food programme dropped to less than half of the previous week’s high of 19.3 million barrels to 7.3 million barrels in the week ending 8 November, averaging slightly over 1 million barrels per day. The weekly exports were completed in seven loadings, five from Mina-al-Bakr with 5.7 million barrels of oil  and two from Ceyhan with 1.6 million barrels. Priced at an average of approximately €20.80 (euros) or $20.80 per barrel, Iraqi crude yielded an estimated €154 million or $154 million in revenue, at current prices and rate of exchange.

Total exports of Iraqi crude in current phase XII of the programme, which began on 30 May 2002, have amounted to 186.1 million barrels of oil out of 480 million barrels approved by the United Nations oil overseers under 196 oil purchase contracts, including four new contracts approved in the past week. The estimated revenue generated so far in this phase is €4.45 billion or $4.46 billion. Phase XII ends on 25 November 2002. With 72 per cent of the total oil revenue being allocated to the humanitarian programme, as required under Security Council resolution 1330 (2000), Iraq would need to export about $7 billion worth of oil during the current phase in order to meet its budgetary target of over $5 billion.

Since the beginning of the programme on 10 December 1996, Iraq has exported some 3.2 billion barrels of oil at an estimated $38.6 billion and €22 billion ($20 billion) in revenue. Some  $39.3 billion worth of contracts have been approved by the Security Council’s 661 sanctions committee and the Office of the Iraq Programme (OIP) for the purchase of various humanitarian supplies and equipment, including about $3.6 billion worth of oil industry spare parts and equipment. So far, more than $25 billion worth of supplies and equipment have been delivered to Iraq, including $1.5 billion worth oil spare parts and equipment, while another $10.4 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.  

A cumulative revenue shortfall since phase VIII of the programme has left 1,608 approved humanitarian supply contracts, worth over $3.1 billion, without available funds. The sectors affected by the revenue shortfall are: electricity with $587 million; agriculture with $545 million; food handling with $513million; health with $334 million; housing with $320 million; water and sanitation with $301 million; education with $260 million and; telecommunications and transportation with $246 million.

Following the approval of a list of nearly 6,000 items by the 661 Committee on 28 October 2002 for “fast-tracking”, OIP has processed the first batch of 15 eligible contracts worth $44.5 million under this procedure, as authorized by Security Council resolution 1409 (2002).

Out of a total of 3,392 contracts for humanitarian supplies worth over $6.4 billion processed by the United Nations Secretariat under the new set of procedures of Security Council resolution 1409 (2002), based on the Goods Review List (GRL), 2,147 contracts worth about $2,77 billion (43.2 per cent) have been approved by OIP after having been assessed by the United Nations Monitoring, Verification and Inspection Commission (UNMOVIC) and the International Atomic Energy Agency (IAEA) as not containing any GRL items, including a number of contracts previously placed on hold by the 661 Committee. UNMOVIC/IAEA have categorized 1,123 contracts worth $3.24 billion (50.6 per cent) as “GRL non-compliant”, requiring additional technical information from suppliers to enable final assessment.

So far, 126 contracts worth $424 million (3.7 per cent) were found to contain GRL items, of which 13 contracts worth $3.85 million were approved and 15 contracts worth $21.7 million were rejected by the Committee. Three GRL-contracts worth $7.35 million had lapsed in the absence of a petition from the supplier to the Committee. The remaining GRL-contracts were at various stages of action. 

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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