Wednesday, November 15, 2006
Iraq to transport oil to Jordan overland
Commerce, Region
Jordan's "Al-Ra'y" reported on November 13 that Iraq is prepared to begin transporting oil overland to Jordan within two days. Informed sources said the Jordanian-Iraqi Overland Transportation Company will handle the transportation of oil until the end of this year. After that, the transportation contract will be offered to one of nine companies that have submitted bids. The transportation of Iraqi oil to Jordan is based on a memorandum of understanding signed between Jordanian Prime Minister Ma'ruf al-Bakhit and his Iraqi counterpart al-Maliki to supply Jordan with 10-30 percent of its oil needs at preferential prices. The understanding is based on a barter system under which Jordan will import Iraqi oil at preferential prices and export Jordanian goods and products to Iraq. Meanwhile, Jordan and Iraq agreed to begin a series of meetings to determine Iraq's debt to Jordan following disagreements about the amount owed.
COMMENT: The routes from Baghdad through al-Anbar to the Jordanian border have been dangerous for a long time, with Baghdad drivers charging extortionate fees to travel west or turning down jobs altogether due to the dangers involved. Militants and criminals regularly attack convoys on the road. Lorries carrying oil have been a particular target as the insurgents often kidnap and kill the drivers and use the lorries as VBIEDs. COMMENT ENDS.
