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Office of the Iraq Programme
oil for food

28 December 1998

 

Oil sales continue, first humanitarian contract for Phase V received

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


 

OIL CONTRACTS APPROVED DURING THE WEEK 19 - 25 DECEMBER 1998

 

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

 

Oil Spare Parts Contracts Approved 19 -24 December 1998

 

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

 

 for further information please contact John Mills on 917.328.7500