Ammon News - Minister of Energy and Mineral Resources, Saleh Kharabsheh, announced that Jordan has approached the Iraqi side to renew a memorandum of understanding (MoU) on importing crude oil from Iraq.

Kharabsheh detailed that the Kingdom imported approximately 5 million barrels of Iraqi oil from May 4, 2023, to July 30, 2023. The oil was transported from the Kirkuk warehouse in Iraq to the Zarqa-based Petroleum Refinery in Jordan using Iraqi and Jordanian tankers.

Under a 2023 agreement, Jordan purchases Iraqi crude oil (Kirkuk crude oil) at the monthly Brent crude oil rate minus $16 per barrel to account for differences in quality and transportation fees. This arrangement aims to meet 7 percent of Jordan’s crude oil needs.

Kharabsheh also noted that discussions with the Iraqi side have led to an agreement to increase the quantities of Iraqi oil exported to Jordan. The Iraqi Council of Ministers approved an increase from 10,000 barrels per day to 15,000 barrels per day starting August 2023, under the same contractual conditions outlined in the MoU. All necessary technical and logistical arrangements have been made to facilitate this increase in oil transport from the Kirkuk warehouse to the Zarqa refinery.

As a result, the monthly quantity of Iraqi crude oil exported to Jordan will rise from 300,000 barrels to 450,000 barrels, covering approximately 10 percent of Jordan’s crude oil requirements.

Kharabsheh stated that the MoU has been extended for an additional three months, from May 4, 2024, to August 4, 2024, to transfer the remaining quantities stipulated in the original agreement. The Iraqi side has been approached to renew the MoU for continued cooperation. Petra