MEOG: Supplies and output rise

This week’s MEOG covers the delivery of Iraqi crude to the Jordanian border and efforts by Iran to increase production.

Trucks carrying Iraqi crude arrived at the country’s border with Jordan following the bilateral renewal of a supply agreement that had expired in January.

Over the weekend, the deputy president of Jordan’s Truck Owners Syndicate, Nael Thiabat, told local media that 300 tankers filled with crude loaded at Iraq’s Baiji refinery had arrived at the Iraqi-Jordanian border ahead of entry into the Hashemite kingdom this week.

He said that the final documents were being completed, with 60,000 barrels set to be delivered to Jordan’s Zarqa refinery. Preparations for the deliveries began last week, in line with an announcement in late March by Jordan’s Ministry of Energy and Mineral Resources (MEMR).

Hassan Hiari, assistant for energy affairs at the MEMR, said that trucked consignments equating to 10,000 barrels per day (bpd) of crude would resume in early April, noting that the parties had been in dialogue over the extension throughout February.

Meanwhile, Iran has maintained its upstream momentum as it seeks to increase production of both oil and gas.

While the outlook for the Islamic Republic on a world stage remains uncertain as talks with international powers stall, Tehran is focused on increasing oil output for sale on global markets and more gas is required to feed the downstream and satisfy peak demand at home and in neighbouring Iraq.