Jordan again buys crude oil from Iraq

Nov. 10, 2003
Jordan signed an agreement with Iraq Oct. 31 to purchase 2.6 million bbl of crude for $70 million to ensure supplies for the remainder of the current year, officials announced.

Jordan signed an agreement with Iraq Oct. 31 to purchase 2.6 million bbl of crude for $70 million to ensure supplies for the remainder of the current year, officials announced.

The crude, bought at the world market price of $26.50/bbl, will be transported by sea from Iraq's port of Mina Al-Bakr to storage facilities at Aqaba in southern Jordan, according to Khaldun Qtaishat, an official of the Jordanian energy ministry. The oil is being loaded and would begin arriving in 10-15 days, Khaldun said.

Before the US-led war to topple the regime of former Iraqi President Saddam Hussein, Jordan received all of its oil from Iraq, importing some 5.5 million tonnes/year by road, half of it free and the remainder at a preferential price.

With the outbreak of the war in March, Jordan had to find supplies elsewhere at market prices, and turned to Saudi Arabia, Kuwait, and the UAE (OGJ Online, June 9, 2003). Jordanian officials estimated the cost of supplies from the Persian Gulf at $1 billion.

Under terms of the new deal, Jordanian officials said the crude is being shipped by sea due to "technical problems" pertaining to Iraqi refineries and that transport by sea would continue until the problems were overcome. Jordan formerly received its supplies from Iraq's northern fields around Kirkuk, which have been hard hit by sabotage since May.