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Oil-for-Food Background Information

 

Weekly Update for 27 February to 5 March 1999

In the week to 5 March, the oil overseers report that 18.6 million barrels of Iraqi crude oil was exported with an estimated value of $178 million. This brings the total exports since the beginning of Phase V, which runs from 26 November 1998 to 23 May 1999, to 189.7 million barrels with an estimated value of $1663 million - for an average price of $8.71 a barrel and an average export rate of 1.84 million barrels per day. (this figure is calculated from the beginning of Phase V on 26 November, Iraq began exporting oil on 4 December)

The overseers approved three new contracts for the sale of oil: one with a Syrian company for 1,500,000 barrels of Kirkuk crude for Europe; the second with another Syrian company for 1,500,000 barrels of Kirkuk crude for Europe and the third with a company from the United Arab Emirates for 1,800,000 of Basrah Light destined for Asia. To date the overseers and the 661 Committee have approved 87 contracts for a total volume of 315.1 million barrels (164.6m Basrah light, 150.5m Kirkuk).

The independent inspection agents monitoring the export of Iraqi oil report that the Iraqi authorities have postponed the loading of two ships which had been scheduled to dock at Ceyhan next week. The postponement is attributed to the reduction in oil stocks at Ceyhan due to the shutdown of the Kirkuk-Ceyhan pipeline from Sunday evening to early Thursday morning last week. The total volume of oil involved is 2.75 million barrels. The independent inspection agents advise that the overall export of oil from Ceyhan during Phase V should not be affected by last week's interruption.

The Security Council's 661 Committee has approved an additional 4 contracts for oil industry spare parts and equipment worth $1,450,505. Two of these had earlier been placed on hold. The total number of contracts approved so far is 386 worth $229,490,496 - slightly more than the revised allocation for Phase IV.

The number of contracts received last week is 6 for a total of $1,694,129. The total number of oil sector contracts received by OIP is now 528 with a total value of $280,443,516. Two more contracts were put on hold - there are 93 on hold worth $27,985,429.

In the past week the OIP received a further 84 applications for the approval of contracts for the supply of humanitarian goods, including the first contract for high protein biscuits. This contract is for 1354 tonnes of biscuits worth $1.7 million from the $16.7 million allocated in Phase IV for targeted nutrition aimed at improving the health of pregnant and nursing mothers and malnourished children.

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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