Jordan, Iraq renew oil supply deal of 10,000 bpd

AMMAN — Jordan and Iraq on Thursday signed a memorandum of understanding for the supply and transportation of crude oil.

As per the agreement, Jordan will import 10,000 barrels of crude oil per day (bpd) at a discounted rate of $16 per barrel less than the monthly Brent crude rate, to cover quality differentials and transportation costs, according to a ministry statement.

The memorandum was signed by Minister of Energy and Mineral Resources, Saleh Al Kharabsheh, and Iraqi Minister of Oil, Hayan Abdul Ghani.

The daily 10,000 barrels account for approximately 7 per cent of Jordan's crude oil needs, Kharabsheh said, commending the cooperation between the two countries in the energy sector and emphasising the importance of continuing to implement joint projects that serve the interests of both nations and their people.

The Kingdom imported approximately 4.5 million barrels of crude oil from Iraq between September 2021 and the end of March 2023, at an average of approximately 9,992 barrels per day, Kharabsheh said.

Citing an Iraq Ministry of Oil statement, the Jordan News Agency, Petra, reported that the two sides reached an agreement to renew the contract, and will begin exporting 10,000 bpd for a period of one year starting in June. The decision came as part of the development of bilateral relations in the oil and energy sector.

Iraqi oil exports to Jordan had been suspended since the beginning of April following the expiry of the last memorandum of understanding regarding the supply of crude oil to Jordan.