Security conditions still blocking Iraqi oil shipment to Jordan

Sep 24, 2007, 5:03 GMT

Amman - The delivery to Jordan of the first shipment of Iraqi oil was still facing 'tremendous security challenges,' a local newspaper reported Monday.

'The tremendous security challenges render it impossible to predict when the shipment will arrive in Jordan,' the Jordan Times quoted an Energy Ministry source as saying.

Jordanian Prime Minister Marouf Bakhit said on Thursday that the Iraqi crude shipment was expected to arrive in the Jordanian territory 'within a few hours.'

The delay in the shipment's delivery indicates that 'special security measures are being implemented inside Iraq to guarantee a safe passage of the cargo,' the Jordan Times quoted a well-informed source as saying.

A convoy of 25 trucks reportedly left the Kirkuk area last week heading to the Jordanian-Iraqi border carrying the first shipment of Iraqi oil to the Hashemite Kingdom.

Under a 2006 agreement between the two governments, Iraq agreed to supply Jordan with 10-30 per cent of its daily energy needs of around 100,000 barrels at a preferential price of 18 dollars below that prevailing on the world market, officials said.

The discount is expected to soften the impact of soaring oil prices on the deficit of Jordan's state budget.