Iraq's Crude Oil Exports to Jordan Surpass 900,000 Barrels in Q2 2023

Shafaq News/ Iraq's crude oil exports to Jordan exceeded 900,000 barrels during the second quarter of this year, according to data released by the Iraqi Organization for Marketing of Oil (SOMO).

SOMO revealed that Jordan's imports of Iraqi oil for May, June, and July totaled 901,223 thousand barrels, with a daily average of 10,013 thousand barrels. The revenue generated from these exports amounted to $54.88 million, with an average oil price of $60.76 per barrel.

The recent export surge follows the approval of a new memorandum of understanding (MoU) between Iraq's Ministry of Oil and Jordan's Ministry of Energy and Mineral Resources. The Iraqi Council of Ministers, in a meeting on March 28, 2023, endorsed the recommendation of the Energy Ministerial Council, paving the way for a one-year extension of the crude oil processing agreement. The extension commenced upon entry into force.

In the backdrop of this agreement, Jordan had previously entered into an arrangement to purchase 10,000 barrels per day of crude oil from Iraq's Kirkuk fields. This agreement experienced fluctuations, with shipments commencing in September 2021, temporarily ceasing in February 2022 due to contract expiry, resuming in April, halting again in August, and finally resuming in September 2022.

The trade arrangement sees Iraq supplying crude oil to Jordan at preferential prices, facilitated through tank trucks. The daily export volume hovers around 10,000 barrels, bolstering Jordan's efforts to meet its local demand for this essential energy resource.