Jordan awaits response from Iraq on renewal of crude oil supply agreement

Oil tankers
(Photo: Jordan News)
AMMAN — The Ministry of Energy and Mineral Resources revealed that it is waiting for a response from Iraqi authorities regarding the renewal of a memorandum of understanding (MoU) signed between the two countries in 2021. اضافة اعلان

The MoU sees Jordan importing around 10,000 barrels of crude oil per day from Iraq at a discounted rate, according to the Jordan News Agency, Petra.

DetailsUnder the MoU, Jordan imports 10,000 barrels per day of crude oil from the Kirkuk oil fields in northern Iraq at a discounted rate of $16 per barrel from the average price of Brent crude to account for transport costs and quality differences.

The actual loading of the import of Iraqi crude oil began in September 2021 but was halted for logistical and technical reasons. Therefore, a deadline of December 31, 2022 was added to the MoU in order to complete the contracted quantities.

Request for extension grantedOn December 15, 2022, Energy Minister Saleh Kharabsheh formally requested Iraq to extend the MoU for a second time for a period of three months, starting on January 1, 2023, and ending on March 31, 2023, with the same contractual terms. The Iraqi side approved the request.

A total of 4.5 million barrels were imported into Jordan from Iraq between September 2021 and the end of March 2023 at a pace of about 9,992 barrels per day.

The MoU has been significant for Jordan as it provides a stable supply of crude oil at a discounted rate, which helps in reducing the cost of energy in the country.

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