Iraq's SOMO Reports July Crude Oil Exports to Jordan at $64.05 Per Barrel, Below Official Price

Shafaq News/ The Iraqi Oil Marketing Company (SOMO) revealed that the average price of crude oil exported to Jordan during July stood at $64.05 per barrel. This figure notably falls below the official selling price, announced by the Ministry of Oil at $77.69 per barrel, according to data provided by the ministry.

SOMO's data further indicates that total oil exports to Jordan for July amounted to 344,804 barrels, with an average daily export rate of 11,000. As a result, the estimated total import value from Jordan's oil exports reached approximately $22 million.

This revelation comes in the wake of a recent decision by the Iraqi Council of Ministers, dated March 28, 2023, approving the recommendation put forth by the Energy Ministerial Council.

The decision greenlit the signing of a new memorandum of understanding for crude oil processing between the Ministry of Oil and the Jordanian Ministry of Energy and Mineral Resources. The one-year extension is set to commence from the entry into force.

Notably, Jordan had previously agreed to procure 10,000 barrels per day of crude oil from Iraq's Kirkuk fields starting in September 2021. However, this arrangement experienced interruptions. After its initial suspension in February 2022 due to contract expiry, shipments resumed in April, were paused in August, and recommenced in September 2022.

Iraq's oil exports to Jordan continue to be conducted at preferential prices, facilitated through tank trucks. With an average daily export volume of approximately 10,000 barrels, this trade relationship remains a crucial aspect of the economic ties between the two nations.