Ammon News - AMMONNEWS - A British company today signed an agreement for a major investment in Jordan. It will over 700 jobs in Jordan and help put the Kingdom on the track of self-sufficiency in energy.

The Agreement is for an Oil Shale Surface Retort Concession in Al-Lajjun . It was signed today between the Jordanian Government represented by the Natural Resources Authority (NRA) and Karak International Oil (KIO which is owned by the British Company “Jordan Energy and Mining Ltd. (JEML).

The Jordanian side was represented by Dr. Khaled Toukan, Minister of Energy and Mineral Resources and Chairman of the Natural Resources Authority (NRA), in the presence of Dr. Maher Hijazin, Director General of NRA. Mr. Chris Morgan Deputy Chairman of KIO signed on behalf of the company, in the presence of Peter Millett, the British Ambassador to the Hashemite Kingdom of Jordan.

In accordance with this agreement KIO will apply modern technology utilizing thermal cracking and retorting to surface mine and process the oil shale in the area of Lajjun (an area of 35km2). The project which has a capital investment of $1.8 billion, will put Jordan on track for energy self sufficiency. During a period of 5-7 years the production is planned to reach 15,000 barrels per day, after which it may be increased to 60,000 bpd in staged expansions.

The project will employ 700 hundred people in direct jobs, and up to 2500 during construction activities.

Mr. Chris Morgan, Deputy Chairman of Karak International Oil said: “Following almost five years of exploration drilling, trial mining, pilot plant runs in Canada and environmental impact assessments leading to a Feasibility study submitted to the NRA in July 2009; we are now delighted to sign this Concession agreement with the Government of Jordan. The agreement will allow us to proceed to detailed engineering and to construct and operate the facilities under internationally competitive and stable fiscal and legal terms."

"We look forward to producing new oil from the country’s indigenous resources as well as fresh employment opportunities and economic wealth creation for the benefit of Jordan.”

The British Ambassador, Mr. Peter Millett said: “This agreement is an exciting prospect for Jordan and for the UK. It brings a major investment from the United Kingdom, a sure vote of confidence in the Jordanian economy and the government’s economic reform programme.”

According to the Natural Resources Authority data, Jordan has more than 50 billion tons of oil shale; this quantity, if exploited using cutting edge technology, is capable of producing enough to meet the oil needs of the Kingdom estimated at 100,000 bpd, while additional quantities may be exported over a span of hundreds of years.