While details are still being discussed, there will eventually be a float for tender to international companies to set up the multi-million dollar project.
According to Ansamed, the pipeline will be connected to Jordan’s refinery and Aqaba Port, and will allow Iraq to export up to 1 MMbbl/d. Additionally, Iraq will receive gas and oil at discount prices.
Jordan on the other hand, will receive discounted fuel from Iraq at $US5 below international prices, while increasing its use of Iraqi oil from 10,000 to 15,000 bbl/d. Although Jordan imports most of its oil from Saudi Arabia at preferential prices, the present amounts are below those of the kingdom’s needs.
The agreement, which is the first of its kind signed by Iraq with another country, encompasses the areas of transporting and storing fuel and natural gas, conducting studies and joint excavation work.