Oil-for-Food Background Information
Exports Under United Nations Oil-for-Food Programme average 2 million Barrels
exports under the United Nations oil-for-food programme totaled 13.9 million
barrels for the week ending 20 December an average of about two million
barrels per day.
were 11 loadings for the week (14-20 December) from the authorized terminals:
three from the Iraqi port of Mina al-Bakr (5.2 million barrels) and eight from
the Turkish Mediterranean port of Ceyhan (8.7 million barrels). These are the
only outlets for Iraqi oil allowed under the oil-for-food programme. Total
exports for the week
(13.9 million barrels) generated estimated revenue
of 352 million (euros) or $361 million, at current prices and rates of
exchange. The average price of Iraqi crude for the reporting period was
approximately 24.60 or $25.25 per barrel.
new contracts were approved by the oil overseers for the week (14-20 December),
bringing the current total to 64, covering 178.3 million barrels of oil.
Estimated revenue generated from the beginning of phase Xlll (5 December 3
June 2003) at the current rate of exchange, stands at $508 million.
a total 4,448 contracts for humanitarian supplies worth about $8.4 billion
processed by the United Nations Secretariat under the Goods Review List (GRL)
and new procedures under Security Council resolution 1409 (2002), the Office of
the Iraq Programme has approved 3,124 contracts worth about $4.2 billion (49.8
per cent in terms of value) after assessment by the United Nations Monitoring,
Verification and Inspection Commission (UNMOVIC) and the International Atomic
Energy Agency (IAEA) that they do not contain items on the Goods Review List.
include 958 contracts worth more than $1.5 billion that had previously been on
hold by the 661 Sanctions Committee. These have now been reviewed by UNMOVIC/IAEA
under para 18 of the procedures of resolution
the total contracts, 1,155 worth about $3.7 billion (43.8 per cent in terms of
value) are on GRL Non Compliant status. UNMOVIC and IAEA will require additional
technical information from suppliers to enable final assessments.
So far, 182 contracts worth $590.3
million have been found by UNMOVIC/IAEA to contain one or more GRL items. Of
these, 82 contracts worth $104 million have been reviewed by the 661 Sanctions
Committee, of which, 19 contracts worth $7.7 million have been approved. Nine
have lapsed because the suppliers have not submitted a petition within 10
working days of the denial. Eight
of the 82 contracts, worth $20.6 million, have been rejected because of a
high risk of diversion to military use. An additional 45 contracts worth
$58.9 million have been denied approval by the 661 Committee, pending appeal.
Due to a cumulative oil revenue
shortfall dating from phase VIII (9 June - 5 December 2000) through phase Xll of
the programme, 2,215 UN-approved humanitarian
supply contracts worth some $4.2 billion, currently lack funds. The sectors
affected by the revenue shortfall are: agriculture ($707 million); food handling
($529 million); food ($465 million); electricity ($479 million); health ($493
million); water and sanitation ($419 million); housing ($413 million); education
($311 million); telecommunications and transportation ($342 million).
oil-for-food programme was established by the Security Council on 14
April 1995. Some 3.27 billion barrels of
Iraqi oil valued at about $60.3 billion have been exported under the programme
since December 1996. Of this amount, 72 per cent of the total has been allocated
towards humanitarian needs nationwide. The balance goes to: Gulf War reparations
through a Compensation Fund (25 per cent); UN administrative and operational
costs for the programme (2.2 per cent) and costs for the weapons inspection
programme (0.8 per cent).
December 1996 about $40.5 billion worth of humanitarian supplies, including $3.6
billion worth of oil spare parts, have been approved by the 661 Sanctions
Committee and the Office of the Iraq Programme. Of this amount, some $25.8
billion worth of humanitarian supplies and equipment have been delivered to Iraq
under the oil-for-food programme, including $1.6 billion worth of oil industry
spare parts and equipment. An additional $10.4 billion worth of supplies are
currently in the production and delivery pipeline.
Produced for media and public
information not an official United Nations Document