UN, Iraq reach accord to extend memorandum on oil-for-food program

The United Nations and Iraq on Monday extended the Memorandum of Understanding (MOU) governing the oil-for-food program which allows Baghdad to sell its petroleum and use a portion of the proceeds to purchase humanitarian relief goods.

The extension was formalized, as has been the practice for each phase of the program, through an exchange of letters between Baghdad and the UN.

The latest extension covers the entire 150-day current phase of the program, which was renewed by the UN Security Council last week.

Comprised of 10 sections and two annexes, the MOU aims to ensure the effective implementation of the oil-for-food program. It obliges the Iraqi Government to guarantee the equitable distribution of humanitarian supplies throughout the country and outlines observation procedures to confirm compliance.

Annex I covers the program's implementation in the provinces of Erbil, Dohouk and Suleimaniyeh. Annex II deals with the contractual procedures for the sale of Iraqi oil.

According to the Office of the Iraq Program, which oversees the UN relief effort in the country, there have been no Iraqi oil exports since June 4th.