Jordan Times
Wednesday, September 19, 2007

Iraq says will respect Jordan oil agreement

By Khalid Neimat

AMMAN - Iraq on Tuesday vowed to respect its commitment to an oil deal signed with Jordan last year.

In a phone conversation, Iraqi Premier Nouri Maliki assured Prime Minister Marouf Bakhit that his country is committed to sell and transport oil to Jordan’s border, an official at the prime minister’s office told The Jordan Times.

The Jordan News Agency, Petra, said it has learned the first shipment was already on its way to the country.

The two sides signed a deal in 2006 during Bakhit’s visit to Baghdad. Under the agreement, Iraq agreed to supply Jordan with 10-30 per cent of its daily needs of around 100,000 barrels.

Iraq offered the essential commodity at a preferential rate of $18 per barrel below market price. Supplies are to start at around 10,000 barrels daily to gradually reach 30,000 barrels a day.

The oil supplies, which are likely to partially relieve the country’s huge oil bill burden of JD633 million, were due to arrive in September 2006 but were delayed for security reasons.

Iraqi Ambassador in Amman Saad Hayyani said earlier this month the route of the shipments, which were due to be carried along the Kirkuk-Beiji road, was still too dangerous to ensure safe passage of oil en route to the Kingdom.

Officials told The Jordan Times earlier yesterday that they were talking to their Iraqi counterparts to find a way out of the impasse.


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