Office of the Iraq Programme Oil for Food

The Security Council’s 661 Committee approved an additional 14 contracts for spare parts and equipment for Iraq’s oil industry during the past week with a total value of $4,771,198. Six contracts were with companies in the United Arab Emirates for motor spare parts, cable, compressors and oil spare parts, worth a total of $498,372.53. (for full details of this week’s approvals see the attached table)

The Office of the Iraq Programme received another 32 contracts for oil spare parts and equipment last week bringing the total received to 207. So far the 661 Committee has approved 56 contracts, worth a total of $62,232,885. The committee put on hold another 16 oil spare contracts worth a total of $3,322,485. The number on hold is now 61, with a total value of $40,175,480.

In resolution 1175 in June this year the Security Council authorized the import of up to $300 million worth of spare parts equipment to enable Iraq to increase the export of petroleum and petroleum products.

The Oil Overseers advise that during the period 10 to 16 October they approved no additional oil contracts. Three companies whose contractual volume had been reduced have been informed by Iraq’s State Oil Marketing Company that they will be supplied with the full quantities originally contracted. The amount of oil involved is 2,620,000 barrels and brings the total volume of oil contracts to 306,225,000 barrels.

During the week there were eight loadings totaling 11 million barrels with an estimated value of $113.5 million. The revenue generated during Phase IV at current prices is about $2,323 million.

The Office of the Iraq Programme received an additional 33 applications for contracts under the Enhanced Distribution Plan. The 661 Committee approved another 12 contract applications for a total of 508 approvals. One application was put on hold. There were three applications received under Distribution Plan Three. Two of these have been submitted to the 661 Committee and are pending the no-objection deadline.

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.

Oil Spare Parts and Equipment Approved 10-16 October 1998
Country	Nature of spares or equipment	Contract value
France	PIPELINE EQUIPMENT & SPARES (OIL)	$95,000.00
Spain	BATTERIES	$949,980.00
China	PIPELINE EQUIPMENT & SPARES (OIL)	$945,800.00
China	WIRELINE UNITS AND SPARES	$133,000.00
UAE	DIESEL ENGINE MOTOR SPARE PARTS	$7,495.87
UAE	CABLE	$26,500.00
UAE	COMPRESSOR	$78,696.00
UAE	COMPRESSOR	$62,511.00
Cyprus	BATTERY/ACCESSORIES	$191,440.00
UAE	OIL SPARE PARTS	$119,670.00
UAE	OIL SPARE PARTS	$203,499.66
Belgium	OIL SPARE PARTS	$347,605.00
Jordan	OIL SPARE PARTS	$1,450,000.00
Turkey	PIPELINE EQUIPMENT & SPARES (OIL)	$160,000.00
	Value of contracts approved this week	$ 4,771,197.53
	Value approved up to 12 October	*$ 57,461,687.11*
	Total approved to date:	*$ 62,232,884.64*