Iraq, Jordan plan to start building oil pipeline in 2003

By OGJ editors

HOUSTON, Nov. 25 -- Iraq and Jordan plan to build an oil pipeline to transport Iraqi crude oil to Jordan starting next year, and they recently signed an accord calling for Baghdad to supply Jordan with all its crude oil supplies in 2003.

OPEC News Agency (OPECNA) reported that Iraqi Oil Minister Amer Mohammed Rasheed and Jordanian Minister of Energy Mohammed Batayneh signed the 2003 oil supply accord last week.

The agreement stipulates that Iraq will supply Jordan with 4 million tonnes of crude oil and 1 million tonnes of oil products, OPECNA reported. Rasheed called the accord a step toward further enhancing joint Arab economic cooperation.

Jordan's oil purchases from Iraq are exempt from United Nations economic sanctions, imposed in August 1990, that prevent Baghdad from exporting its oil. Since December 1996, Iraq has been allowed to sell oil to buy food and medicine.

Meanwhile, Iraq has been exporting oil to Jordan using tanker trucks (OGJ Online, Jan. 30, 2001).

Rasheed said that work would start in early 2003 on the first section of the pipeline, which will extend from the Iraqi border to Jordan's 90,400-b/d refinery at Zarka, northeast of Amman. . Separately, Iraqi oil ministry officials told reporters that they plan to start building the Iraq section of the pipeline next year as well.

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