Nail Thiabat, Director of the Iraqi Oil Transport Company, announced that Jordan and Iraq have agreed to renew the memorandum of understanding for Jordan to import Iraqi oil at a rate of 15,000 barrels per day, as previously agreed between the two countries.
Thiabat mentioned to “Al-Mamlaka” that the first shipment under the new agreement is expected to arrive once the agreement is in effect.
Negotiations to renew the agreement began on May 4, the date the previous memorandum expired.
The Jordanian Ministry of Energy had requested an extension of the memorandum for three months from the Iraqi Ministry of Oil, pending the completion of the contracted quantities. The memorandum is extendable with mutual consent.
Iraqi oil imports cover 7% of Jordan’s oil needs, with 15,000 barrels arriving daily under the memorandum. Initially, the agreement was for 10,000 barrels per day, but increased demand from Jordan prompted the government to request more oil from Iraq.
Jordan imports Iraqi oil at preferential prices, with each barrel priced $16 below Brent crude to account for transport costs and quality differences.
In May 2023, the Jordanian Ministry of Energy reached its first agreement with the Iraqi Ministry of Oil to supply and transport oil to Jordan. There are still over 330,600 barrels of oil remaining under the recently expired memorandum.
