Jordan to resume import of Iraqi crude oil this week “” Zawati

Jordan to resume import of Iraqi crude oil this week “” Zawati

AMMAN “” The Kingdom will resume importing Iraqi crude oil within the next two days, Energy Minister Hala Zawati announced on Tuesday.

Iraq had suspended oil exports to Jordan after oil prices dropped to less than $20 per barrel.

Zawati said that negotiations with Iraq during the last period have been "positive“, which led to the resumption of Iraqi crude oil imports to the Kingdom, the Jordan News Agency, Petra, reported.

In 2006, Amman and Baghdad signed a memorandum of understanding (MoU), under which Jordan would import Iraqi crude oil daily with a discount of $18 from the price of Brent crude per barrel, provided that the Kingdom bears the cost of transport between Kirkuk and Zarqa.

A new memo was signed in 2019 that resembled the old agreement but dropped the discount from $18 to $16.

Under the new MoU, Jordan imports 10,000 barrels of Iraqi crude oil daily with a discount of $16 from the price of Brent crude per barrel to cover the difference of transport costs and deviations in standards.

Iraqi oil, exported from Baiji in Iraq to the Jordan Petroleum Refinery Company, covers 7 per cent of the Kingdom's daily demand.

The total volume of Iraqi crude oil received by the Kingdom