Efforts underway to resume Iraqi crude oil exports after renewal of MoU

AMMAN — The Ministry of Energy and Mineral Resources said that it is awaiting an official Iraqi response regarding the renewal of a memorandum of understanding (MoU) under which Jordan imports oil from Iraq.

A source at the ministry told The Jordan Times that efforts are underway to complete the necessary procedures to resume the import of Iraqi crude oil after signing the MoU anew.

Under the deal, Jordan imports crude oil to meet part of its annual needs, not exceeding 10,000 barrels daily.

Jordan buys crude oil from Iraq with a discount of $16 from the price of Brent crude.

The imports of Iraqi crude oil began in September 2021, yet the process was paused several times for logistical and technical reasons.

An official request was made to the Iraqi side to extend the MoU for the second time for an additional period of three months when Minister of Energy and Mineral Resources Saleh Kharabsheh visited Baghdad on December 15, 2022. The proposed extension would start from the expiry date of the first extension on January 1, 2023 through March 31, 2023 with the same contractual terms. This extension was approved by the Iraqi side.

From September 2021 until the end of March 2023, Jordan imported about 4.5 million barrels of oil from Iraq at a rate of 9,992 barrels per day, which constitutes about 7 per cent of the Kingdom's needs.