Iraq, Jordan agree deal over trade of oil and goods

Iraq and Jordan on Saturday agreed a deal over the trade of oil and goods at a meeting between their two prime ministers on the Iraqi-Jordanian border, reported Reuters.

Under the deal, Iraq would sell 10,000 barrels per day of oil to Jordan at a special price, transported by tanker from its Kirkuk oilfields, the Jordanian prime minister’s office said in a statement. It did not say what the price was or when the oil would be exported.

Iraqi goods imported via Jordan’s Aqaba port on the Red Sea would meanwhile receive preferential tariffs, it said.

Iraqi Prime Minister Adel Abdul Mahdi, who said on Tuesday the deal was close to being reached, finalised the agreement at a meeting with his Jordanian counterpart Omar Razzaz.

Aqaba port at the north end of the Red Sea has long been a major transit route for Iraqi imports and exports, and Amman has long relied on Iraqi crude to fuel its economy.

Razzaz’s office also said Jordan would begin to export electricity to Iraq within the next two years.

Abdul Mahdi says the government aims to decrease dependency on oil exports for state revenue. Oil exports from OPEC’s second-largest producer account for more than 95 percent of state revenues.