Office of the Iraq Programme Oil for Food

Security Council Committee lifts holds on 13 and
approves 23 contracts for Iraq's oil industry

Over the past week the Security Council's 661 Committee approved a total of 36 new contracts for the supply of spare parts and equipment for Iraq's oil industry. The value of these contracts was $15,468,813 bringing the total approvals for the oil sector to 111 contracts worth $87.9 million.

Of the 36 contracts approved - 13, worth $10.1 million, had earlier been put on hold by one or more members of the 661 Committee. A full listing of the contracts approved over the past week is attached.

As at the close of business on 30 October, the Office of the Iraq programme had received 277 applications worth $155,932,903 for the approval of oil spare parts and equipment contracts. At present, the 661 Committee is considering 28 contracts worth $5.8 million. During the past week 19 contracts were placed on hold valued at $9,145,168

Oil Sector	Contracts	Value
Received	277	$155,932,903
Approved	111*	$87,900,006
On Hold	78*	$38,918,206

The Office of the Iraq Programme is discussing with the Permanent Mission of Iraq the desirability of minimising delays in the opening of letters of credit. This is an important issue in terms of expediting the arrival of spare parts and equipment needed by Iraq's oil industry as most contracts specify a delivery date within a specified period from the opening of the letter of credit.

The letters of credit are issued by the Banque Nationale de Paris in New York (which holds the United Nations Iraq Account) on instructions from the Central Bank of Iraq. The Office of the Iraq Programme advises the Permanent Mission of Iraq each day of the decisions of the 661 Committee. As at 30 October 1998 35 letters of credit have been issued.

The United Nations Oil Overseers advise that over the past week they approved no additional contracts for the sale of Iraqi oil. The total contracts approved remains at 59 for a total of 308,355,000 barrels.

There were six loadings for a total of 8.8 million barrels worth $95 million. The total revenue raised during the current phase is estimated at $2.57 billion.

Country	Nature of Spares	Contract Value
Belgium	OIL SPARE PARTS	$277,500
China	PIPELINE EQUIPMENT & SPARES	$4,338,000
China	PIPELINE EQUIPMENT & SPARES (OIL)	$80,000
China	PIPELINE EQUIPMENT & SPARES	$226,477
China	PIPELINE EQUIPMENT & SPARES	$12,024
China	PIPELINE EQUIPMENT & SPARES	$44,480
China	PIPELINE EQUIPMENT & SPARES	$1,441,686
China	FERROCHROME LIGNOSULFONATE	$25,024
China	OIL SPARE PARTS	$155,000
China	FORKLIFT	$188,000
China	CEMENT	$52,137
Denmark	PIPELINE EQUIPMENT & SPARES	$1,043,090
Denmark	PIPELINE EQUIPMENT & SPARES	$2,270,804
Denmark	PIPELINE EQUIPMENT & SPARES	$100,580
Denmark	PIPELINE EQUIPMENT & SPARES	$20,139
Denmark	OIL SPARE PARTS	$92,298
Denmark	OIL SPARE PARTS	$84,370
Denmark	OIL SPARE PARTS	$193,349
Denmark	OIL SPARE PARTS	$374,115
France	DEMULSIFIER	$1,067,500
France	OIL SPARES FOR WASTE WATER TREATMENT	$18,575
France	PUMP/PARTS	$41,385
France	VALVES/PUMPS/PARTS FOR UNDERGROUND STORAGE	$555,340
France	OIL SPARE PARTS	$178,132
Italy	PIPELINE EQUIPMENT & SPARES	$1,036,000
Jordan	PIPELINE EQUIPMENT & SPARES	$58,148
Jordan	PIPELINE EQUIPMENT & SPARES (OIL)	$10,147
Jordan	PIPELINE EQUIPMENT & SPARES (OIL)	$120,000
Russian Federation	PIPELINE EQUIPMENT & SPARES (OIL)	$24,308
Switzerland	PIPELINE EQUIPMENT & SPARES (OIL)	$230,192
The Netherlands	OIL SPARE PARTS	$209,032
The Netherlands	PUMP/PARTS	$177,264
The Netherlands	PUMP/PARTS	$137,847
Turkey	ELECTRICAL SPARE PARTS FOR OIL SECTOR	$336,951
UAE	OIL SPARE PARTS	$173,969
UAE	WASTE WATER EQUIPMENT PARTS	$74,952

	Value of contracts approved this week	$ 15,468,814
	Total approved to date:	*$ 87,900,006*