Office of the Iraq Programme Oil for Food

The Office of the Iraq Programme has received the first contract for humanitarian supplies under Phase V of the oil-for-food programme. The fifth phase was authorized by the Security Council in resolution 1210 (1998) which permits Iraq to sell up to $5.265 billion dollars worth of oil in the 180 days from 26 November 1998.

Two thirds of the revenue is used to pay for the import of food, medicine and other humanitarian supplies as well as spare parts for the oil industry. Due to the state of Iraq's oil industry and the current low price of oil it is expected Iraq's oil revenues during the phase will be less than $3 billion.

The first Phase V contract is for the import of 26,000 tonnes of sugar from Vietnam. The contract is being circulated this week to the members of the Security Council's 661 Committee. Most food contracts are approved under the terms of a two day no objection procedure. The OIP is continuing to receive and circulate to the Committee contracts for humanitarian supplies under Phase IV of the programme.

During last week, the 661 Committee approved 13 contracts for the import of oil industry spare parts and equipment worth $4,381,937. The total number of contracts approved so far is 238 for $133,600,395. In resolution 1175 adopted in June 1998, the Security Council authorised Iraq to import up to $300 million worth of spare parts and equipment to enhance its ability to produce oil for export.

The number of spare parts contracts received by the OIP during the week was 11 with a value of $ 24,962,889 bringing the total received to 447 worth $243,240,792. The Committee put another six contracts on hold with a value of $511,834. This brings the total number of spare parts contracts on hold to 133, worth $43,618,318.

In the week from 19 to 25 December, Iraq exported 17.6 million barrels of oil in 13 loadings from the port of Ceyhan in Turkey and loading platform of Mina Al Bakr in southern Iraq. The estimated value of the exported oil is $145 million. The revenue generated since the beginning of the current phase is about $325 million.

The United Nations oil overseers approved a further eight contracts for the sale of Iraqi oil and sent two to the Security Council's 661 Committee for their consideration. This brings the total oil sales contracts approved to 58 for 224.2 million barrels of oil.

For more information please call John Mills on 1.212.963.1646 or 1.917.328.7500

NATION	BARRELS	CRUDE OIL	DESTINATION

Italy	3,600,000	Kirkuk	EUROPE

Russia	2,600,000	Basrah Light	USA

Russia	2,600,000	Basrah Light	EUROPE & USA

Spain	3,000,000	Kirkuk	EUROPE

France	2,000,000	Kirkuk	EUROPE

Italy	1,800,000	Kirkuk	EUROPE

Switzerland	3,500,000	Basrah Light	USA

UAE	1,800,000	Basrah Light	USA&FAR EAST
Total	20,900,000

Country	Nature of Spares	Contract Value
China	FORKLIFT	140,250
UAE	VEHICLE/SPARE PARTS	1,180,000
France	AIR COMPRESSOR PARTS	24,908
France	MOTOR	14,270
Austria	PUMP/PARTS	221,459
Italy	FIELD INSTRUMENTATION/SPARE PARTS	163,242
France	OIL SPARE PARTS	31,206
Germany	OIL SPARE PARTS	508,011
France	OIL SPARE PARTS	167,885
Belgium	OIL SPARE PARTS	1,361,475
Cyprus	OIL SPARE PARTS	25,000
Italy	OIL SPARE PARTS	214,230
Belgium	OIL SPARE PARTS	330,000
	Value of contracts approved this week	4,381,937
	Value approved up to 18 December	129,218,458
	Total approved to date:	133,600,395