Government working to renew oil import MOU with Iraq

Energy Minister Dr. Saleh Al-Kharabsheh announced that Jordan's oil imports from Iraq totaled around 5 million barrels from May 4, 2023, to June 30, 2024. These imports were transported by Iraqi and Jordanian tankers from the modern Kirkuk storage site in Iraq to the Jordan Petroleum Refinery in Zarqa.

Al-Kharabsheh stated that the import of Iraqi crude oil follows the memorandum of understanding (MOU) signed between Jordan and Iraq on May 4, 2023. Under this agreement, Jordan purchases Iraqi crude oil (Kirkuk crude) at a price based on the monthly Brent crude average minus $16 per barrel to cover quality differences and transportation costs, meeting 7% of Jordan's crude oil needs.

Negotiations with Iraq resulted in an agreement to increase oil imports to Jordan. The Iraqi cabinet approved increasing daily exports to Jordan from 10,000 barrels per day to 15,000 barrels per day starting August 2023, under the same contractual terms in the MOU. All technical and logistical arrangements were made to transport these increased quantities from the Kirkuk site to the Zarqa refinery.

The monthly export quantity of Iraqi crude oil to Jordan has risen to approximately 450,000 barrels, up from 300,000 barrels, now covering about 10% of Jordan's crude oil needs.

The MOU was extended for an additional three months, from May 4, 2024, to August 4, 2024, to transport the remaining quantities. Jordan has also requested Iraq to renew the MOU.

Imaan Awad, Director of Oil and Natural Gas at the Ministry, indicated that the Ministry is currently working with the Iraqi side to sign a new MOU.