AMMAN — The Iraqi Council of Ministers has approved an extension of the memorandum of understanding (MoU) for the supply of crude oil to Jordan, Minister of Energy and Mineral Resources Saleh Kharabsheh announced on Sunday.

 

 The MoU, originally signed between the Iraqi Ministry of Oil and Jordan's Ministry of Energy on May 4, 2023, will now remain in effect until June 26, 2025, under the same contractual terms.

 

Kharabsheh said that under the extended MoU, the Kingdom will continue to receive up to 15,000 barrels of oil per day, based on the monthly average price of Brent crude oil, with a discount of $16 per barrel to account for differences in quality and transportation costs, the Jordan News Agency, Petra, reported.

 

The minister highlighted the significance of this agreement in bolstering economic cooperation between Jordan and Iraq emphasising that the MoU not only facilitates the supply of crude oil but also promotes the rehabilitation of the land route between the two countries and the operation of tanker fleets in both Jordan and Iraq.

 

Kharabsheh also noted that this initiative reflects the mutual economic interests between the two countries, strengthens energy cooperation, creates jobs, and revitalises the crucial economic role of the land route.

 

As part of the extended agreement, the Iraqi Cabinet has approved an increase in daily crude oil exports to Jordan, raising the quota from 10,000 barrels to 15,000 barrels starting in August 2023. 

 

The additional volumes will be transported from the Kirkuk storage facility to the Jordan Petroleum Refinery Company (JPRC) in Zarqa.

 

 

With this expansion, monthly oil exports from Iraq to Jordan will rise from 300,000 barrels to approximately 450,000 barrels, constituting around 10 per cent of Jordan's total crude oil requirements. 

 

Between May 4 and July 30, 2023, the Kingdom imported around 5 million barrels of oil from the modern storage facility in Kirkuk, with transportation facilitated by both Iraqi and Jordanian tankers, ensuring a smooth flow of oil to JPRC.