AMMAN: Jordan’s Minister of Energy and Mineral Resources, Saleh Kharabsheh, announced on Sunday that Jordan has secured approval from the Iraqi government to extend the memorandum of understanding (MoU) for crude oil supply.
According to the Jordan News Agency, the agreement, initially finalized in May 2023 involving the Iraqi Ministry of Oil, the Ministry of Electricity, and Jordan’s Ministry of Energy and Mineral Resources, has been renewed until June 2025 under unchanged terms.
Under the renewed MoU, Jordan will continue to import up to 15,000 barrels of oil per day. The pricing of the oil will be determined based on the monthly Brent crude rate, adjusted downwards by $16 per barrel to accommodate differences in quality and transportation costs.
This volume represents approximately ten percent of Jordan’s total crude oil needs. Minister Kharabsheh emphasized the MoU’s importance in bolstering economic cooperation between Jordan and Iraq, and in enhancing overland trade routes.
He highlighted that the agreement will also support the maintenance and rehabilitation of the highway connecting the two countries, which is vital for their respective tanker fleets.
Minister Kharabsheh further underscored that this development serves the economic interests of both nations, creates new employment opportunities, promotes collaborative energy initiatives, and revitalizes the crucial economic corridor between Jordan and Iraq.
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