The economy news _ Baghdad
Jordan’s Minister of Energy and Mineral Resources Saleh Al-Kharabsha announced Iraq’s agreement to extend the memorandum of understanding for crude oil processing signed between the two countries until next June 26, 2025, while noting that the price will be less than Brent by $16 due to the quality difference and the cost of transportation.
Minister Al-Kharabsha said that “under the extension of the memorandum of understanding signed on 4/5/2023, the Kingdom will be supplied no more than 15 thousand barrels per day on the basis of the monthly Brent crude oil rate minus $16 per barrel, to cover the quality difference and transportation wages,” noting that this amount constitutes 10 percent of the Kingdom’s needs for crude oil, according to Jordanian media.
He stressed “the importance of the memorandum in strengthening economic cooperation between the two brotherly countries and activating land import and the subsequent rehabilitation of the land line between the two countries and the operation of the tank fleet in Jordan and Iraq, which embodies the economic interests of Jordan and Iraq, enhances energy cooperation between them and contributes to the creation of more job opportunities and the restoration of the vital economic role of the land road between the two countries.”
Jordan imports Iraqi oil from Kirkuk, which is lower-quality oil and price from Iraqi oil in the south as well as lower quality than Brent crude, while Jordan bears the cost of transporting oil at its expense through tanks, which makes the price $16 less than Brent.
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