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MEOG ProjeCts & ComPanIes MEOG
Delayed Iraqi oil cargoes to begin arriving in Jordan
jordan
JoRDAN’S Energy Minister Hala Zawati announced this week that oil cargoes from Iraq would soon begin arriving in the Hashemite kingdom following delays.
Zawati was quoted by Ammon as saying that all of the necessary procedures to allow for deliveries to begin were “in their nal stages” and added that cargoes would begin arriving “soon” without providing a speci c start date.
Jordanian rm Burj Al Hayat Transport and Trading won a tender from Jordan’s Ministry of Energy and Mineral Resoures (MEMR) to move a total of 500,000 tonnes (3.67mn barrels) of crude by road tanker from Baiji in central Iraq, with cargoes of 10,000 barrels arriving daily.
In July, Jordan Times quoted Burj Al Hayat owner Nael iabat as saying that all of the nan- cial and technical elements of the deal had been concluded, with 600 visas having been obtained for the 300 Jordanian and 300 Iraqi drivers that will be ferrying the cargoes. iabat added that more would be applied for in the future.
MEMR oated the crude transport tender in March following the signing of a memoran- dum of understanding (Mou) between Zawati and Iraqi Deputy Prime Minister for Energy and Minister of oil amir Ghadhban in Amman and Baghdad in February.
e bilateral deal stipulated that the ows would cover around 7% of Jordan’s current demand, buying the oil at a $16 per barrel dis- count to Brent in order to cover the transport
and deviation in speci cations. In return, Iraqi goods exported through the port of Aqaba will receive preferential rates.
e leaders also agreed that Jordan would begin supplying electricity to its neighbour, which lacks su cient power generation capacity to meet fast-growing domestic demand, “within two years”.
Preliminary work to develop the 1mn barrel per day, $5bn Basra-Aqaba pipeline is thought to be imminent, with Iraqi Ministry of oil (Moo) spokesperson Assem Jihad saying in July that “investment o ers from international compa- nies” were under evaluation on the basis of estab- lishing “the pipeline in return for a percentage that will be deducted for each exported barrel”.™
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w w w . N E W S B A S E . c o m Week 33 20•August•2019