MEOG: Iraqi court dismisses case against PM

The Supreme Federal Court of Iraq has dismissed a legal case against the country’s Prime Minister, Mohammad Shia al-Sudani, which had called for discounted crude sales to neighbouring Jordan to be halted.

The court said that it lacked jurisdiction in such matters, noting that its powers are “exclusively determined by Articles 52 and 93 of the 2005 Constitution of Iraq and Article 4 of the Supreme Federal Court’s law no. 30 of 2005, which was amended by law no. 25 of 2021.”

A deal agreed in 2019, covers the export of 10,000 barrels per day (bpd) of Iraqi crude trucked from Kirkuk, with Jordan purchasing the oil at a $16 per barrel discount to Brent in order to cover the transport and deviation in specifications with Iraqi goods exported through Aqaba port receiving preferential rates in return.

In August 2023, Jordan’s Ministry of Energy and Mineral Resources (MEMR) announced the increase of this level to 15,000 bpd. Iman Awwad, the director of oil and natural gas at the ministry, said that the Iraqi authorities had agreed to augment the quantities starting that month.

This increase reflected the contractual terms set forth in the crude oil memorandum of understanding (MoU), which was jointly renewed for a further 12 months by both countries on May 4.