Office of the Iraq Programme Oil for Food

12 October, 1998
Press Release

Oil-for-Food Background Information

Eleven new oil industry spare parts contracts approved

The Security Council committee responsible for the functioning of the sanctions on Iraq imposed by resolution 661 has approved a further 11 applications for the purchase of spare parts and equipment for Iraq's oil industry. The total value of the oil sector approvals over the past week was $2.5 million.

Seven of these contracts were with French companies for a total of $1.7 million. Six of the contracts were for pipeline spares. The seventh was for two firefighting vehicles valued at $488,000. Another three applications for pipeline equipment and spares were approved from companies in Belgium (two for a total of $141,500) and the Netherlands ($50,356). The Committee also approved a contract worth $580,000 with a Turkish company to provide services, consumables and use of equipment for the inspection and servicing of the first 78 kilometres of the 40 inch pipeline from Iraq to Turkey.

The Office of the Iraq Programme received 45 new contracts for oil spare parts equipment for a total of 175 contracts with a value of $130,052,538 and has submitted 117 contracts to the Committee. Of these, 42 contracts have been approved worth $57,461,687. The 661 Committee put on hold an additional 14 contracts. There are currently 45 contracts on hold - the value of these is $36,852,996.

The 661 Committee approved 43 additional humanitarian sales applications under the enhanced distribution plan last week for a total approvals of 497, put 3 on hold and blocked none. For the second consecutive week there were no new sales applications received in respect of Distribution Plan Three and no new approvals. All the funds available for Distribution Plan Three have been committed except for approximately four million dollars which remains available in the medical sector.

During the reporting period 3 October 1998 to 9 October there were 12 loadings of Iraqi crude oil totalling 14.9 million barrels with an estimated value of $165 million. The total revenue generated from the beginning of Phase IV is now about $2220 million at current prices. Phase Four runs from 30 May to 25 November.

There were no new contracts approved for the sale of oil. The number of approved contracts remains at 58 totalling 303,605,000 barrels. Two contracts are still pending due to lack of supporting documents.

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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For further information please contact Hasmik Egian, OIP - NY, 1.212.963.4341

Oil-for-Food Background Information		Eleven new oil industry spare parts contracts approved The Security Council committee responsible for the functioning of the sanctions on Iraq imposed by resolution 661 has approved a further 11 applications for the purchase of spare parts and equipment for Iraq's oil industry. The total value of the oil sector approvals over the past week was $2.5 million. Seven of these contracts were with French companies for a total of $1.7 million. Six of the contracts were for pipeline spares. The seventh was for two firefighting vehicles valued at $488,000. Another three applications for pipeline equipment and spares were approved from companies in Belgium (two for a total of $141,500) and the Netherlands ($50,356). The Committee also approved a contract worth $580,000 with a Turkish company to provide services, consumables and use of equipment for the inspection and servicing of the first 78 kilometres of the 40 inch pipeline from Iraq to Turkey. The Office of the Iraq Programme received 45 new contracts for oil spare parts equipment for a total of 175 contracts with a value of $130,052,538 and has submitted 117 contracts to the Committee. Of these, 42 contracts have been approved worth $57,461,687. The 661 Committee put on hold an additional 14 contracts. There are currently 45 contracts on hold - the value of these is $36,852,996. The 661 Committee approved 43 additional humanitarian sales applications under the enhanced distribution plan last week for a total approvals of 497, put 3 on hold and blocked none. For the second consecutive week there were no new sales applications received in respect of Distribution Plan Three and no new approvals. All the funds available for Distribution Plan Three have been committed except for approximately four million dollars which remains available in the medical sector. During the reporting period 3 October 1998 to 9 October there were 12 loadings of Iraqi crude oil totalling 14.9 million barrels with an estimated value of $165 million. The total revenue generated from the beginning of Phase IV is now about $2220 million at current prices. Phase Four runs from 30 May to 25 November. There were no new contracts approved for the sale of oil. The number of approved contracts remains at 58 totalling 303,605,000 barrels. Two contracts are still pending due to lack of supporting documents. 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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