Iraq could resume oil exports to Jordan

Jordan

Published: 2018-08-30 14:06

Last Updated: 2024-03-28 12:26


Iraq invited Jordan in for talks to potentially resume crude exports to the Kingdom. (Financial Tribune)
Iraq invited Jordan in for talks to potentially resume crude exports to the Kingdom. (Financial Tribune)

Iraq has invited the Jordanian Minister of Energy, Hala Zawati, in for talks to potentially resume crude exports to the Kingdom.

This comes following a request from Jordan to discuss resuming the shipment of 10,000 to 15,000 oil barrels a day via truck, the head of Iraq's Oil Marketing Company (SOMO), Alaa al-Yasiri, told Reuters on Thursday.

In 2014, the shipments were halted due to security conditions in Iraq.

Zawati is expected to arrive in Baghdad soon to finalize the deal, Reuters reported.

Iraq’s crude oil exports for the month of August came close to 3.595 million barrels per day, however, it is looking to increase this number “as soon as OPEC agrees how members will share a collective supply boost,” according to al-Yasiri.

Some obstacles could stand in the way of Iraq increasing that number quickly, including investments constraints, internal political disputes with the Kurds in the North, and Iran.

Relations between Iraq and fellow OPEC member Iran could be impacted if exports increased from the former.

Customers are abandoning Iran as their source of oil due to the renewed US sanctions on them. Some of the same customers have turned to Iraq instead.

Iran was critical of fellow producers “seeking to take its market share for undermining unity among OPEC nations,” according to Bloomberg.

However, al-Yasiri said that “SOMO doesn’t have a goal to take others’ clients.”

When asked if his country will try to “fill in for sales lost by Iran because of sanctions,” he said: “Iraq rejects this principle. The principle of hunting opportunities. There should be a unifying decision for all the countries under the umbrella of OPEC.”