Jordan saves $4.76 per barrel under Iraq oil deal
Shafaq News- Baghdad
Jordan’s treasury saves $4.76 per barrel under its preferential oil agreement with Iraq, accounting for nearly 30% of the $16 discount against the monthly average Brent crude price, energy expert Asim Jihad told Shafaq News on Tuesday.
Citing official Jordanian figures, Jihad broke down the remaining $11.24 into $7.75 per barrel for overland transportation from Iraq to Jordan’s Zarqa refinery, $3.40 for crude quality differences benefiting the refinery, and nine cents in inspection fees.
He noted that oil pricing also depends on crude density, sulfur content, refinery compatibility, and delivery terms, with transportation costs varying between shipments through Iraq’s southern ports and overland deliveries to Jordan by tanker trucks.
The agreement covers approximately 10,000 to 15,000 barrels per day of Kirkuk crude, a small share of Iraq’s total oil exports. Jihad said assessing its economic value requires comparing Iraq’s net returns with alternative export options while considering reciprocal benefits, including a 75% reduction in handling fees for Iraqi goods entering through Jordan’s Aqaba port and broader energy cooperation arrangements cited in official Jordanian statements.
Iraqi oil exports to Jordan remain suspended over technical issues involving crude specifications. Oil Ministry spokesperson Salim Al-Rikabi told the Iraqi News Agency on Monday that Iraq lacks sufficient Kirkuk Light crude for delivery and had offered Basrah Medium as an alternative, but Jordan said its refineries could not process that grade.
