Oil-for-Food Background Information
Oil Exports Reach 15.2 million Barrels for Week
exports under the oil-for-food programme totaled 15.2 million barrels for the
week (25-31 January) – an average of about 2.17 million barrels per day.
were 12 loadings from the authorized terminals: four from the Iraqi oil platform
at Mina al-Bakr (6.6 million barrels) and eight from the Turkish Mediterranean
oil terminal at Ceyhan (8.6 million barrels). These are the only outlets for
Iraqi oil exports allowed under the oil-for-food programme.
exports for the week
(15.2 million barrels) generated estimated revenue
of €375 million (euros) or $405 million, at current prices and rates of
exchange. The average price of Iraqi crude for the reporting period was
approximately €24.95 or $27.00 per barrel.
new oil purchase contracts were approved by UN oil overseers for the week,
bringing the current total to 113, covering 289 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 $2.6 billion for 95.4
million barrels of oil.
total 5,348 contracts for humanitarian supplies worth $10.3 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 3,943 contracts worth about $5.9 billion (57.3 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 1,023 contracts worth more than $1.9 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
total contracts, 1,190 worth about $3.7 billion (36.1 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, 245 contracts worth $815.4 million have
been found by UNMOVIC/IAEA to contain one or more GRL items. Of these, 123
contracts worth $269.8 million have been reviewed by the Security Council’s
661 Sanctions Committee, of which, 28 contracts worth $13.6 million have been
approved. Thirty four, worth $42.9 million, have lapsed because the suppliers
have not submitted a petition within 30 working days of the denial. Twenty one
of the 245 contracts, worth $52.7 million, have been rejected because of a
“high risk of diversion to military use.” An additional 34 contracts worth
$155.7 million have been denied approval by the 661 Committee, pending appeal.
Contracts containing GRL items represent 7.9
per cent, in terms of value, of all applications processed by the UN experts so
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, 2,365 UN-approved humanitarian supply contracts worth some $4.5
billion, currently lack funds. The sectors affected by the revenue shortfall
are: food handling ($686 million); agriculture ($657 million); food ($522
million); housing ($532 million); electricity ($471 million); water and
sanitation ($468 million); education ($396 million); telecommunications and
transportation ($384 million); health ($369 million).
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).
December 1996 about $42 billion worth of humanitarian supplies, including $3.7
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 $10.9 billion worth of supplies are currently
in the production and delivery pipeline.
Produced for media and public
information – not an official United Nations Document