August 12, 2008

Iraq Increases Discount on Oil Supplies to Jordan

Text of report in English by official Jordanian news agency Petra- JNA website

["Energy Minister: Iraq Agrees To Increase Discount on Oil Supplies To" - Petra News Agency Headline]

Amman, Aug. 11 (Petra) Iraqi government has agreed to increase discount on crude oil quantities sold to Jordan from Kirkuk oil fields, Minister of Energy and Mineral Resources Khaldun Qutayshat stated Monday [11 August].

Under the agreement with Jordan, the discount on Kirkuk crude oil sold to Jordan will be $US20 per barrel instead of $US18, said the minister.

He explained that the Iraqi agreement came following the recent visit by Iraqi Prime Minister to Jordan last month. During the visit, the memorandum of understanding (MoU) signed in August 2006 was prolonged to another three years as of June 12, 2008, Qteishat said.

The MoU is related to supplying Jordan with crude oil from Karkuk oil fields. Under the MoU, crude oil cargos to Jordan will be 10000 barrels a day, 10 per cent of the kingdom's daily needs. The amount could be raised up to 30000 barrels a day which is the quantity suitable to be mixed with the oil being produced by the Jordanian petroleum refinery.

Oil shipments will be loaded either from the Chinese/Baiji oil refinery or from Kirkuk oil facilities and Jordan should pay for transport cost, according to the agreement.

Originally published by Petra-JNA website, Amman, in English 2014 11 Aug 08.

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