Oil-for-Food Background Information
18 – 24
Iraqi oil Exports Generate $324 million for week
Iraqi exports under the oil-for-food programme totaled 11.4 million barrels for the week(18-24 January) an average of about 1.6 million barrels per day.
There were 8 loadings from the authorized
terminals: four from the Iraqi port of Mina al-Bakr (6.32 million barrels) and
four from the Turkish Mediterranean port of Ceyhan (5.04 million barrels). These
are the only outlets for Iraqi oil exports allowed under the oil-for-food
Total exports for the week
(11.4 million barrels) generated estimated revenue of €300 million (euros) or $324 million, at current
prices and rates of exchange. The average price of Iraqi crude for the reporting
period was approximately €25.90 or $27.80 per barrel.
Nine new contracts were approved by UN oil
overseers for the week, bringing the current total to 111, covering 273 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 $2.2
Of a total 5,141
contracts for humanitarian supplies worth $9.9 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 3,745 contracts worth about $5.5 billion (56 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.
1,023 contracts worth more than $1.8 billion that had previously been on hold by
the Security Council’s 661 Sanctions Committee. These have now been reviewed
by UNMOVIC/IAEA under para 18 of the procedures of resolution
Of the total
contracts, 1,196 worth about $3.7 billion (37.9 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, 227 contracts worth $731.6 million
have been found by UNMOVIC/IAEA to contain one or more GRL items. Of these, 117
contracts worth $248.5 million have been reviewed by the Security Council’s
661 Sanctions Committee, of which, 25 contracts worth $10.9 million have been
approved. Twenty nine, worth $37.3 million, have lapsed because the suppliers
have not submitted a petition within 30 working days of the denial.
Nineteen of the 117 contracts, worth $43.6 million, have been rejected
because of a “high risk of diversion to military use.” An
additional 37 contracts worth $145.6 million have been denied approval by the
661 Committee, pending appeal.
Contracts containing GRL items represent
7.4 per cent, in terms of value, of all applications processed by the UN experts
Humanitarian revenue shortfall
Due to a cumulative oil revenue shortfall
dating from phase VIII (9 June - 5 December 2000) through phase Xll of the
programme, 2,408 UN-approved humanitarian supply contracts worth some $4.5
billion, currently lack funds. The sectors affected by the revenue shortfall
are: agriculture ($650 million); food handling ($611 million); health ($518
million); food ($516 million); housing ($472 million); electricity ($470
million); water and sanitation ($453 million); telecommunications and
transportation ($369 million); education ($342 million).
The oil-for-food programme was established
by the Security Council on 14
April 1995. Some 3.3 billion barrels of
Iraqi oil valued at about $62 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 since December 2000. The balance goes to:
Gulf War reparations through a Compensation Fund (25 per cent since December
2000); UN administrative and operational costs for the programme (2.2 per cent)
and costs for the weapons inspection programme (0.8 per cent).
Since December 1996 about $42 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 $26 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 $10.8 billion worth of supplies are currently in the production and delivery pipeline.org
Produced for media and public
information – not an official United Nations Document