Iraq agrees to renew agreement to supply oil to Jordan

Jordanian Minister of Energy and Mineral Resources Saleh Kharabsheh announced on Sunday that Jordan had received approval from the Iraqi government to renew the memorandum of understanding for crude oil supply, Jordan News Agency reported.

The agreement, originally signed in May 2023 by the Iraqi Ministry of Oil, the Ministry of Electricity and the Jordanian Ministry of Mineral Resources, has now been extended until June 2025 under the same terms.

Under the extended MoU, Jordan will receive up to 15,000 barrels of oil per day at a price based on the monthly Brent crude rate, minus $16 per barrel to account for quality differences and transportation fees.

This quantity constitutes approximately 10 percent of Jordan’s crude oil needs.

Kharabsheh highlighted the significance of the MoU in strengthening economic cooperation between Jordan and Iraq and boosting land-based imports.

He noted that this would also aid in rehabilitating the highway linking the two countries used by their tanker fleets.

The minister added that this development underscores the economic interests of both nations, fosters joint energy cooperation, will generate additional employment opportunities, and revitalize the critical economic corridor between Jordan and Iraq.