Local News

Jordan resumes importing oil from Iraq in early May

Amman Today

publish date 2023-04-30 13:35:15

Jordan will resume importing oil from Iraq at a rate of 10,000 barrels per day during the first week of May, after importing it stopped since the beginning of April following the end of the memorandum of understanding that provides Jordan with crude oil, according to Nael Thiabat, director of the company carrying Iraqi oil to Jordan.

Dhibat said, toThe kingdomThe agreement was signed between Jordan and Iraq, but the logistical procedures may take 6 to 7 days.

Iraq agreed to renew the memorandum of understanding that supplies Jordan with crude oil for a period of one year, after the Iraqi cabinet approved the recommendation of the Ministerial Energy Council, but the tanker company stopped importing oil until the memorandum is signed by the two countries.

Dhiabat explained that 500 tanks will transport oil from Iraq to Jordan, as 50% of the drivers are Jordanians and the other half are Iraqis, according to the agreement, indicating that the loading will be from the Kirkuk refinery.

Regarding compensation for the days when imports were stopped, the director of the oil tanker company expected to “extend the agreement for an additional month after the expiration of the year of renewal of the agreement.”

Jordan imported from Iraq, according to the memorandum of understanding signed with the Iraqi government, to supply crude oil from September 2021 until the end of last March, quantities of oil amounting to approximately 4.5 million barrels.

The Ministry of Energy indicated that it will work upon receiving approval from the Iraqi side to renew the memorandum of understanding by completing the necessary procedures to resume importing Iraqi crude oil upon signing the memorandum of understanding.

According to the agreement, the Kingdom purchases Iraqi crude oil (Kirkuk crude oil) to meet part of its annual oil needs at a rate of 10,000 barrels per day based on the monthly Brent crude oil rate minus $16 per barrel to cover the difference in quality and transportation fees.

The kingdom

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Jordan News

Source : اخبار الاردن

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