The Jordanian Energy Ministry on Wednesday (May 1st) awarded the tender for transporting Iraqi crude oil to Zarqa to Burj Al Hayat Transport and Trading Co., provided the process begins in the coming two weeks, The Jordan Times reported.
Under the tender, the company would transport 500,000 tonnes of Iraqi crude from Baiji in Iraq to the Jordan Petroleum Refinery Company (JPRC) in Zarqa Governorate, a statement from the Ministry of Energy and Mineral Resources said.
Minister of Energy and Mineral Resources Hala Zawati said the tender is an implementation of the memorandum of understanding signed between Jordan and Iraq early in February for importing crude oil.
Under the agreement, the kingdom will buy 10,000 barrels of crude Kirkuk oil per day from its neighbour, which covers 7% of the kingdom’s daily demand.
The agreement also stipulates that Jordan will receive Iraqi oil with a discount of $16 from the price of Brent crude per barrel, to cover the difference of transport costs and deviations in specifications.
Zawati noted that 50% of daily imports will be transported via Iraqi petrol tanks, calling for concerted efforts to achieve success in the crude transport process, according to the statement.
Jordanian-Iraqi co-operation in the energy field is not limited to this deal, the minister said, noting that the two countries are working on finalising the necessary procedures for establishing the Basra-Aqaba oil pipeline along with the project for linking the two countries’ electricity grids.