Iraq And Jordan Sign Agreement In Oil And Energy Sector
|June 12, 2012||Filled under All Dinar Trade Articles|
Erbil, The Council of Ministers has approved the recommendation of the energy committee to authorize the Minister of Oil to sign a memorandum of understanding between the Iraq‘s Ministry of Oil and the Ministry of Energy and Mineral Resources in Jordan in the areas of oil and energy.
The agreement is for a five year period and includes the construction of a pipeline to transport crude oil and natural gas through Jordanian territory.
Iraqi government spokesman Ali al-Dabbagh said in a statement today: “The recommendation of the energy committee about the memorandum of understanding between Iraq and Jordan shows the keenness of the Iraqi government to develop a clear and appropriate action mechanism to promote cooperation between the two sides in the areas of oil and gas, as Iraq has large reserves of crude oil and natural gas that meet the local demand and export the surplus, in light of the growing need of Jordan to import these materials to support its development plans and meet its needs.
The cooperation between the two countries in the memorandum of understanding includes supplying Jordan’s crude oil, natural gas, liquefied petroleum gas and heavy fuel oil need, depending on their availability. The deal will also see both sides study the types of Iraqi oil that can be refined in Jordan, with the possibility of selling this oil.
Each party will bear the costs and expenses incurred as a result of performing its obligations according to the memo.
The statement added that the memo will define the legal and commercial framework between the two sides. The agreement can be renewed if both sides agree.
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