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39 companies bid to transport Iraqi oil to Jordan

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Roxy

Roxy

http://www.zawya.com/Story.cfm/sidZA...%20to%20Jordan

39 companies bid to transport Iraqi oil to Jordan

09 July 2009
AMMAN - A senior official said Wednesday the Ministry of Energy and Mineral ResourcesMinistry of Energy and Mineral ResourcesMinistry of Energy and Mineral Resources MEMR will select a new firm soon to transport oil from Iraq to Jordan, after it received financial and technical proposals from 39 companies.

"This is not a new deal," Energy Secretary General Farouq Hiari said. "We need to sign a new contract with a carrier, as the current one ends in September," he added.

Winner of the bid will be announced in two weeks, according to Hiari who mentioned that the Ministry of Energy and Mineral Resources MEMR floated a tender inviting interested businesses to submit their offers until July 7 which was set as the deadline for receiving bids.

The Ministry of Energy and Mineral Resources MEMR got offers from three Iraqi companies and 36 Jordanian ones, he pointed.

Before one year, Jordan and Iraq decided to extend their 2006 oil agreement for three years.

Under the deal, Baghdad will maintain its supply of oil to Jordan, providing 10-30 per cent of the Kingdom's daily oil needs at preferential prices. Jordan petroleum needs stand at 100,000 barrels a day.

Iraq agreed also to bring up the discount offered to Jordan on Kirkuk crude oil to $22 per barrel lower than the international price, amending the previous deal under which the Kingdom was offered Brent crude oil at an $18 discount.

Along 750 kilometres, Iraqi trucks carry the oil from Biji Oil Complex inside Iraq to an unloading station at the Jordanian border, the Ministry of Energy and Mineral Resources MEMR said. Then, the Iraqi trucks are emptied into the Jordanian trucks, which transport the shipment along 300 kilometres to the refinery in Zarqa, the Ministry of Energy and Mineral Resources MEMR added.

Burj Al Urdun is the current shipper of the Iraqi oil to Jordan. The company's fleet comprises 150 Jordanian trucks and around 300 Iraqi trucks.

The Ministry of Energy and Mineral Resources MEMR did not change its conditions regarding the shipment quantity and the duration of contract, Hiari said. "This is a one year contract with same conditions and requirements," he stressed.

Prime Minister Nader Dahabi said early this year that future talks in Baghdad would cover extending an oil pipeline to the Kingdom branching from a pipeline project linking Iraq with the Syrian city of Banyas on the Mediterranean coast.

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