In numbers: Reasons for granting Jordan a preferential price for Iraqi oil, $16 less
In numbers: Reasons for granting Jordan a preferential price for Iraqi oil, $16 less
2026-10-13
Shafaq News – Baghdad
Energy expert Assem Jihad explained on Tuesday the reason for the Iraqi-Jordanian agreement to export oil at a preferential price that is $16 per barrel lower than the monthly average price of Brent crude.
Jihad explained, during his interview with Shafaq News Agency, that this difference is distributed between transportation costs, differences in the quality of raw materials and fees, in addition to a financial saving for the Jordanian treasury.
Jihad said that the details of the pricing formula, according to official Jordanian clarifications, include $7.75 per barrel for land transport fees from Iraq to the Zarqa refinery, $3.4 for crude quality differences in favor of the Jordanian refinery, 9 cents for inspection fees, in addition to $4.76 representing savings for the Jordanian treasury, bringing the total of these components to $16 per barrel.
He added that determining the price of oil does not depend on Brent crude alone, but takes into account the density of the crude, the percentage of sulfur, its technical specifications and its suitability for refineries, as well as transportation costs and delivery conditions, noting the difference in costs between exporting oil by sea through the southern ports and transporting it by land by tankers to Jordan.
He pointed out that the agreement included exporting about 10,000 to 15,000 barrels per day of Kirkuk crude, which is a limited quantity compared to Iraq’s total oil exports, stressing that assessing its economic feasibility requires calculating the net return for Iraq and comparing it with other export options, taking into account the mutual commercial benefits between the two countries.
He pointed out that the cooperation includes other benefits for Iraq, including exempting Iraqi goods arriving through the port of Aqaba from 75% of handling fees, in addition to arrangements for cooperation in the field of energy, according to official Jordanian data.
This comes at a time when Iraqi oil exports to Jordan remain halted for technical reasons, amid ongoing discussions on arrangements to resume supplies and the terms of a trade agreement between the two countries.
shafaq.com
