Importing Iraqi oil will be resumed in 2 days | Business | Ammon News

Importing Iraqi oil will be resumed in 2 days

[7/7/2020 4:45:11 PM]

AMMONNEWS - Energy Minister, Hala Zawati, said Tuesday that importing Iraqi crude oil to Jordan will be resumed within the next two days.

Iraqi had stopped supplying oil to Jordan after oil prices fell to less than $20, which became financially unfeasible.

She added that the recent negotiations with Iraq were positive, and resulted in reimporting oil from Iraq.

Back in 2006, Jordan and Iraq signed a memorandum of understanding (MoU) to supply Jordan with Kirkuk crude oil transported via tanks, according to an equivalent price to the "Brent" crude minus $18, provided that the Kingdom would bear the transportation cost between Kirkuk and Zarqa.

According to the new MoU signed between the two sides in February 2019, which is an exact copy of the previous one, except that the price equation is two dollars less, to become $16 instead of $18.

Under the MoU, Jordan imports 10,000 barrels of oil per day, which constitute 7% of the Kingdom's needs.

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