Ministry: Awaiting Response From Iraq On Oil Imports Mou Renewal
Date
4/12/2023 6:01:01 AM
(MENAFN- Jordan News Agency)
Amman, Apr. 12 (Petra) -- The Ministry of energy and Mineral Resources on Wednesday said that it was awaiting a response from Iraqi authorities regarding the renewal of a 2021 memorandum of understanding under which Jordan buys some 10,000 barrels of crude oil a month from Iraq supplied via tanker trucks.
Under the MoU, signed between the two countries in 2021, Jordan imports 10,000 barrels per day of crude from the Kirkuk oil fields in northern Iraq, at a discount rate of $16 per barrel from the average price of brent crude to account for transport costs and quality differences.
The actual loading of the import of Iraqi crude oil began in September 2021, but was halted for logistical and technical reasons. Therefore, a deadline of 12/31/2022 was added to the MoU in order to finish the contractual quantities.
On December 15, 2022, Energy Minister Saleh Kharabsheh formally requested Iraq to extend the MoU for a second time for a period of three months, starting on January 1, 2023, and ending on March 31, 2023, with the same contractual terms. The Iraqi side approved the request.
A total of 4.5 million barrels were imported into Jordan from Iraq between September 2021 and the end of March 2023 at a pace of about 9,992 barrels per day.
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