Jordan aspires to increase oil imports from Iraq
The Majnoon oilfield near Basra, Iraq. Photo: Reuters
Baghdad (IraqiNews.com) – Negotiations are taking place between the Jordanian and Iraqi sides to renew the Memorandum of Understanding for the supply of Iraqi crude oil signed between the two countries in 2021, Assistant Secretary-General for Energy Affairs at the Jordanian Ministry of Energy, Hassan Al-Hiyari, told Sky News Arabia.
The Memorandum of Understanding was extended after its completion, for a period of three months, from the beginning of January until the end of March 2023, Al-Hiyari elaborated.
Through negotiations, Jordan is looking forward to increase the quantities of crude oil imported from the Iraqi side, Al-Hiyari added.
Hashim Akl, an oil expert, explained that Jordan’s need is estimated at 140 thousand barrels per day, while it imports from Iraq, according to the old memorandum of understanding, 10 thousand barrels per day, which constitutes a small part of its needs, Sky News Arabia reported.
Akl explained that, according to this memorandum, Jordan gets a 16 USD discount on each barrel, while bearing the transportation fees, insurance and handling expenses, and as a result, it achieves a financial benefit of 20 million dinars (28.1 million USD) annually.
According to Aqel, the agreement to increase the quantities of oil imported from Iraq faces many obstacles, most notably the differences between the Iraqi politicians.
Akl believes that the Iranian hegemony over some politicians hinders reaching a new agreement.