Office of the Iraq Programme Oil for Food

5 October 1998

Oil-for-Food Background Information

Revenue for Phase IV Passes the Two Billion Dollar Mark

The total revenue generated during the current phase of the oil-for-food programme has now passed the $2 billion mark. For the first eighteen months of the programme this was the limit set by the United Nations Security Council. In February this year the Security Council responded to a recommendation from Secretary-General Kofi Annan that the programme be expanded and increased the limit to $5.2 billion.

However, low oil prices and the current state of Iraq's oil industry have put that target out of reach. The United Nations oil overseers currently estimate the total revenue for the 180 day period from 30 May to 25 November to be around $3.3 billion dollars. Two thirds of this amount will be spent on the humanitarian programme, providing food, medicine and other commodities needed for the basic well being of Iraq's people.

During the reporting period 26 September 1998 to 2 October, , there were 12 loadings totalling 14.2 million barrels with an estimated value of $180 million. The total revenue generated from the beginning of Phase IV is about $2119 million at current prices

In the same period, the United Nations Oil Overseers approved one new contract for the sale of Iraqi crude oil. The contract for 1.8 million barrels of Kirkuk crude is with a Panamanian company. This brings the number of approved contracts to 58 totalling 303,605,000 barrels. Two contracts are currently pending due to lack of supporting documents.

The Security Council's 661 Committee approved three additional oil spare parts contracts during the past week. Two contracts were with Chinese companies for valves and parts, worth a total of $46,353. The third was with a French company for $132,288 worth of pipeline equipment and spares.

The Office of the Iraq Programme received 11 new contracts for oil spare parts for a total of 130 contracts with a value of $111,948,352. Of these, 31 contracts have been approved worth $54,965,415. The 661 Committee has put 34 contracts on hold - the value of these contracts is $31,125,311.

The 661 Committee approved 36 additional humanitarian sales applications under the enhanced distribution plan last week for a total approvals of 454, put 8 on hold and blocked none. There were no new sales applications received in respect of Distribution Plan Three and no new approvals.

Since the first deliveries in March 1997, seven million tonnes of foodstuffs worth more than $2.25 billion and $366 million dollars of medicine and health supplies have been delivered to Iraq under the oil-for-food programme. In addition, more than $200 million dollars worth of supplies for electrical, water/sanitation, agricultural, education, settlement rehabilitation and demining work have arrived in Iraq.

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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

Oil-for-Food Background Information		Revenue for Phase IV Passes the Two Billion Dollar Mark The total revenue generated during the current phase of the oil-for-food programme has now passed the $2 billion mark. For the first eighteen months of the programme this was the limit set by the United Nations Security Council. In February this year the Security Council responded to a recommendation from Secretary-General Kofi Annan that the programme be expanded and increased the limit to $5.2 billion. However, low oil prices and the current state of Iraq's oil industry have put that target out of reach. The United Nations oil overseers currently estimate the total revenue for the 180 day period from 30 May to 25 November to be around $3.3 billion dollars. Two thirds of this amount will be spent on the humanitarian programme, providing food, medicine and other commodities needed for the basic well being of Iraq's people. During the reporting period 26 September 1998 to 2 October, , there were 12 loadings totalling 14.2 million barrels with an estimated value of $180 million. The total revenue generated from the beginning of Phase IV is about $2119 million at current prices In the same period, the United Nations Oil Overseers approved one new contract for the sale of Iraqi crude oil. The contract for 1.8 million barrels of Kirkuk crude is with a Panamanian company. This brings the number of approved contracts to 58 totalling 303,605,000 barrels. Two contracts are currently pending due to lack of supporting documents. The Security Council's 661 Committee approved three additional oil spare parts contracts during the past week. Two contracts were with Chinese companies for valves and parts, worth a total of $46,353. The third was with a French company for $132,288 worth of pipeline equipment and spares. The Office of the Iraq Programme received 11 new contracts for oil spare parts for a total of 130 contracts with a value of $111,948,352. Of these, 31 contracts have been approved worth $54,965,415. The 661 Committee has put 34 contracts on hold - the value of these contracts is $31,125,311. The 661 Committee approved 36 additional humanitarian sales applications under the enhanced distribution plan last week for a total approvals of 454, put 8 on hold and blocked none. There were no new sales applications received in respect of Distribution Plan Three and no new approvals. Since the first deliveries in March 1997, seven million tonnes of foodstuffs worth more than $2.25 billion and $366 million dollars of medicine and health supplies have been delivered to Iraq under the oil-for-food programme. In addition, more than $200 million dollars worth of supplies for electrical, water/sanitation, agricultural, education, settlement rehabilitation and demining work have arrived in Iraq.
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