Tender for transporting Iraqi oil awarded, process to begin within two weeks

AMMAN — The Energy Ministry on Wednesday awarded the tender for transporting Iraqi crude oil to Zarqa to Burj Al Hayat Transport and Trading Co., provided the process begins in the coming two weeks.

Under the tender, the company would transport 500,000 tonnes of Iraqi crude from Baiji in Iraq to the Jordan Petroleum Refinery Company (JPRC) in Zarqa Governorate, a statement from the Ministry of Energy and Mineral Resources said on Wednesday.

Minister of Energy and Mineral Resources Hala Zawati said that the tender is an implementation of the memorandum of understanding (MoU) signed between Jordan and Iraq early in February for importing crude oil.

Under the MoU, the Kingdom will buy 10,000 barrels of crude Kirkuk oil per day from its neighbour, which covers 7 per cent of the Kingdom’s daily demand.

The MoU also stipulates that Jordan will receive Iraqi oil with a discount of $16 from the price of Brent crude per barrel, to cover the difference of transport costs and deviations in specifications.

Zawati noted that 50 per cent of daily imports will be transported via Iraqi petrol tanks, calling for concerted efforts to achieve success in the crude transport process, according to the statement.

The minister drew attention to the importance of implementing the MoU for activating land transport between the two countries, the operation of truck fleets Jordan’s and Iraq’s and the rehabilitation of roads.

Jordanian-Iraqi cooperation in the energy field is not limited to this deal, the minister said, noting that the two countries are working on finalising the necessary procedures for establishing the Basra-Aqaba oil pipeline along with the project for linking the two countries’ electricity grids.

The Jordanian Burj Al Hayat Transport and Trading Co. won the tender for offering the most economically advantageous offer, according to the statement.

Amman and Baghdad, earlier this year, have signed six agreements in the fields of energy, industry, trade, agriculture, transport and ICT, which are pending implementation.

Under these deals, Jordan would lower its fees on Iraqi shipments via the Port of Aqaba.