Jordan – Jordan has addressed the Iraqi government regarding the extension of the memorandum of understanding on importing oil at reduced prices, which is supposed to expire on August 4.
Jordanian Minister of Energy and Mineral Resources Saleh Al-Kharabsheh said, “The Hashemite Kingdom of Jordan’s imports of Iraqi oil amounted to nearly 5 million barrels during the period from May 4, 2023 to June 30,” noting that “the imports were carried from the modern Iraqi Kirkuk warehouse to the Jordanian Petroleum Refinery site in Zarqa Governorate, by Iraqi and Jordanian tankers.”
Jordan imports Iraqi crude oil in implementation of the memorandum of understanding for the supply of crude oil signed between the government of the Hashemite Kingdom of Jordan and the government of the Republic of Iraq on May 4, 2023, according to Al-Kharabsheh.
Under the memorandum, the Jordanian side will purchase Iraqi crude oil, based on the monthly Brent crude oil rate minus $16 per barrel to cover the difference in quality and transportation costs, in order to meet 7% of the Kingdom’s crude oil needs, as indicated by the Jordanian Minister of Energy and Mineral Resources.
Al-Kharabsheh pointed out that “discussions were held with the Iraqi side to increase the quantities of Iraqi oil to Jordan and a joint agreement was reached between the two sides to increase the quantities of Iraqi crude oil, as the Iraqi Council of Ministers agreed to increase the quantities of Iraqi crude oil exported to Jordan from (10) thousand barrels per day to (15) thousand barrels per day.”
He stated that “the increase agreement was implemented, starting from August 2023, and with the same contractual terms included in the memorandum of understanding, and all necessary technical and logistical arrangements were made to transport these quantities from the oil loading site in Iraq to Jordan, according to Al-Kharabsheh.”
The Jordanian Minister of Energy stated that “the monthly quantity of Iraqi crude oil exported to Jordan has increased to regarding 450,000 barrels per month, instead of 300,000 barrels per month, which constitutes regarding 10% of the Kingdom’s crude oil needs,” noting that “the memorandum of understanding has been extended for an additional 3 months and under the same contractual terms from the date of the memorandum of understanding’s expiration on May 4, 2024 until August 4, 2024, in order to transfer the remaining and unsupplied quantities stipulated in the memorandum of understanding.”
Al-Kharabsheh added that “the Iraqi side was addressed to renew the memorandum of understanding between the two brotherly countries.”
Meanwhile, the Director of Oil and Natural Gas at the Ministry, Iman Awad, revealed that “the Ministry is currently following up with the Iraqi side to sign a new memorandum of understanding between the two parties.”
Agencies
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2024-07-15 11:25:44
