MEOG: Jordan seeks Iraq supply renewal

Jordanian Energy Minister Saleh Kharbsheh has said that negotiations are underway with Iraq to renew a memorandum of understanding (MoU) for crude supplies.

The latest deal – itself a renewal of a bilateral agreement signed between Baghdad and Amman in 2019 – was renewed for a further three months on May 4, and talks are said to be ongoing between the two sides to further prolong the supply arrangement.

This follows an unexpected halt to shipments on April 22, amid political pressure from Iraqi MPs who have claimed that Jordan is hostile towards Baghdad. Meanwhile, during Q3 last year, the parties agreed to raise the daily volume was raised from 10,000 barrels per day to 15,000 bpd, equating to around 10% of total demand.

Kharabsheh told state media that the latest extension of the MoU covers undelivered volumes specified in the original agreement, hedging to ensure stable crude supplies.

The 2019 deal covered the export by truck of 10,000 bpd of Iraqi crude, with Jordan purchasing the oil at a $16 per barrel discount to Brent. This arrangement was designed to account for transport costs and specification differences, with Iraqi goods exported through Aqaba port receiving preferential rates.