The UN Office of the Iraq Programme reported that Baghdad yesterday formally signed a six-month extension to the 1996 Memorandum of Understanding, which governs the oil-for-food programme.

But the Office said Iraq had not given an explanation for the continuing suspension of its oil exports. Baghdad stopped lifting its petroleum at midnight, 30 November, because there was no agreement on oil prices for December. Subsequently, on 8 December, the Security Council committee monitoring the sanctions against Iraq approved a December pricing mechanism.

According to figures released today by the Office, a total of 56 approved contracts for nearly 77 million barrels of oil remain pending.

The office estimated that of the 375.7 million barrels of Iraqi oil exported under the just-concluded six-month phase of the oil-for-food programme - known as phase XIII - "40 per cent were destined for the European market, about 41 per cent for the United States and 19 per cent for the Far East markets."