Ammon News - The Ministry of Energy and Mineral Resources clarified on Monday that Jordan’s imports of Iraqi crude oil are conducted through detailed commercial agreements rather than grants, describing the arrangement as a strategic model for regional economic integration.

The Ministry detailed the pricing mechanism for Kirkuk crude oil. Jordan purchases the oil based on the monthly average price of Brent crude, with a discount of $16 per barrel. This discount is structured to cover specific operational costs and quality adjustments:

– $3.40: Quality differential credited to the Jordan Petroleum Refinery.
– $0.09: Inspection and survey fees.
– $7.75: Transport costs for hauling crude from Iraq to the refinery site.
– $4.76: Net savings realized by the Jordanian Treasury.

The Ministry noted that the logistics of the agreement support local economies in both nations. Under the current commitment, the fleet of tankers transporting the crude is split equally between Jordanian and Iraqi providers, creating hundreds of jobs for drivers and technicians in both countries.

Furthermore, the Ministry highlighted the reciprocal benefits provided to Iraq as part of this economic partnership. Iraqi goods imported via the Port of Aqaba receive a 75% discount on handling fees, with Iraqi importers paying only 25% of the standard costs. Additionally, Jordan has commenced the first phase of the electrical interconnection project, supplying Iraq’s Ar-Rutba region with 40 megawatts of electricity at a 132 kV voltage.

The Ministry emphasized that these agreements are designed to serve mutual interests, ensuring energy security for Jordan while providing Iraq with essential logistics and infrastructure support.

Petra