Page 6 - MEOG Week 15 2022
P. 6
MEOG PIPELINES & TRANSPORT MEOG
Iraqi crude cargoes reach Jordan
IRAQ TRUCKS carrying Iraqi crude arrived at the purchase the oil at a $16 per barrel discount to
country’s border with Jordan following the Brent in order to cover the transport and devia-
bilateral renewal of a supply agreement that had tion in specifications, with Iraqi goods exported
expired in January. through Aqaba port receiving preferential rates
Over the weekend, the deputy president of in return.
Jordan’s Truck Owners Syndicate, Nael Thia- However, last year, Alaa al-Yasiri, general
bat, told local media that 300 tankers filled with manager of Iraq’s state oil marketer Somo, told
crude loaded at Iraq’s Baiji refinery had arrived Iraq News Agency (INA): “The Oil Marketing
at the Iraqi-Jordanian border ahead of entry into Company does not have differential prices, but
the Hashemite kingdom this week. rather fixed prices according to the market …
He said that the final documents were being Jordan stipulated that, according to the Cabinet’s
completed, with 60,000 barrels set to be deliv- decision, the transportation cost was calculated
ered to Jordan’s Zarqa refinery. Preparations for at $11 from Baiji to Jordan, and this is among the
the deliveries began last week, in line with an items of bilateral agreements between the two
announcement in late March by Jordan’s Minis- countries, and the supreme interest is valued by
try of Energy and Mineral Resources (MEMR). the country and the government.”
Hassan Hiari, assistant for energy affairs at With security issues in Iraq leading to a five-
the MEMR, said that trucked consignments year hiatus from 2014 to 2019, shipments were
equating to 10,000 barrels per day (bpd) of crude severely affected again in 2020 by the pandemic,
would resume in early April, noting that the and the resultant drop in oil price led to sev-
parties had been in dialogue over the extension eral pauses in supplies and no crude at all sent
throughout February. to Jordan in August 2020. Cargoes resumed in
Under the terms of the pre-existing bilat- September following a July agreement between
eral deal that was signed in February 2019, Amman and Baghdad on the resumption, with
Iraq agreed to cover around 7% of Jordan’s oil Iraq completing all of the required logistical
demand (10,000 bpd), trucking crude from the preparations. Zawati said that crude flows had
Baiji refinery to the Jordanian border via Kirkuk, stopped after prices fell below $20 per barrel.
then on to the Zarqa refinery near Amman. After The deal was extended in late January 2021
lengthy delays, the first batch of Iraqi crude was after a meeting between prime ministers Mustafa
trucked from Baiji to Jordan via Kirkuk in Sep- al-Kadhimi and Bisher al-Khasawneh. Jordan
tember that year. reported that flows averaged 9,899 bpd from
At the time, it was reported that Jordan would September 1, 2021 and January 30 this year.
P6 www. NEWSBASE .com Week 15 13•April•2022
