AMMAN — Jordan's
imports of Iraqi oil increased in value in 2021 by 27
percent, reaching $74.6 million, compared to $58.4 million in 2020, according
to data from the
Iraqi Ministry of Oil, carried by Al-Ghad News.
اضافة اعلان
Jordan has
imported about 1.2 million barrels from September to December, excluding
October of 2021, while the volume of imports in 2020 was about 2.3 million
barrels.
Data
indicated that the value of oil imports during December 2021 was close to $17.9
million, covering near 310,000 barrels,
and about $19.5 million in November 2021, covering near 300,000 barrels.
The ministry
said that the average price of a barrel in 2021 was about $68.6, compared to
$38.06 in 2020, due to the impact of
COVID-19 pandemic on the global oil market,
including the Kingdom.
Oil prices
at that time reached unprecedented levels that made supplying Iraqi oil to the
Kingdom futile, especially since the Kingdom was already receiving a discount
of $16 per barrel on the global price under an agreement between the two
countries.
Importing
Iraqi crude was agreed under a memorandum of understanding signed between the
two countries on January 28, 2021, whereby Jordan buys Iraqi crude oil to meet
part of its annual needs, not exceeding 10,000 barrels per day with a
fluctuation of around 15 percent (increased or decreased) based on the monthly
average of
Brent crude oil, minus $16 per barrel to cover for quality
difference and transportation fees.
According to
the memorandum, the Jordanian side is obligated to provide fuel road tankers to
transport Iraqi crude oil in Iraq's Baiji region to the
Jordan Petroleum Refinery in Zarqa. The tanks are distributed equally between the Jordanian and
Iraqi companies.
Jordan has
another oil project with Iraq, which is the
Basra-Aqaba pipeline, which the
Iraqi Council of Ministers approved in January.
The project
aims to open a new outlet for Iraqi oil exports, whereby Jordan will be granted
the right to purchase 150,000 barrels of oil per day, to be refined at the oil
refinery in Zarqa.
The project involves
building a 1,665km pipeline to transport Iraqi crude oil with a capacity of one
million barrels per day from Basra to
Aqaba. The cost of implementing the
project is estimated at about $7–9 billion, according to the estimates of the
Iraqi side of the project.
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