Iraq agrees to further discount on oil supplies to Jordan – Energy Minister

By NNN-Petra,

Amman : The Iraqi government has agreed to provide further discount on crude oil sold to Jordan from its Karkuk oil fields, Minister of Energy and Mineral Resources Khaldun Qteishat said.

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Under the agreement with Jordan, the discount on Karkuk crude oil sold to Jordan will be USD 20 per barrel instead of USD 18, said the minister Monday.

He explained that Iraq gave its agreement following the recent visit by Iraqi Prime Minister Nouri al-Maliki to Jordan last month.

During the visit, the memorandum of understanding (MoU) signed in August 2006 was extended for another three years as of June 12, 2008, Qteishat said.

The MoU is related to supplying Jordan with crude oil from the Karkuk oil fields.

Under the MoU, crude oil supply to Jordan will be 10,000 barrels a day, 10 per cent of the kingdom’s daily needs.

The amount could be raised up to 30,000 barrels a day which is the quantity suitable to be mixed with the oil being produced by the Jordanian petroleum refinery.

Oil shipments will be loaded either from the Chinese/Baiji oil refinery or from the Karkuk oil facilities and Jordan should pay for transport cost, according to the agreement.