Amman and Baghdad in talks to restart Iraqi oil exports to kingdom, officials say

Amman and Baghdad have initiated contact to restart Iraqi oil exports to Jordan, energy officials said yesterday, after another halt in a deal long affected by political differences.

The latest pause comes after Jordan drew the ire of Iran’s allies in the Middle East by helping to intercept missile and drone barrages on Israel last month, in rare, direct hostilities between Israel and Iran.

It was also after a declaration by Amman and Kuwait that supported Kuwaiti claims to a maritime area disputed by Iraq.

Jordan was among regional players that responded positively to overtures by Shiite-dominated Iraq in the last four years to improve ties with its Arab Sunni neighbours, although plans for economic projects remain mostly unrealised. A renewable, short-term agreement under which the oil flowed expired a few days ago.

A Jordanian Oil Ministry official said that “bilateral measures” are being taken by both sides to extend the deal.

“There are positive signs from the Iraqi side as far as extending the agreement,” the official said.

Ties between the two countries have soured since the Iran-backed Shiite political ascendancy that came after the fall of Saddam Hussein in 2003. Three years later, however, Iraq agreed to export 10,000 barrels per day of crude oil, at a discount, from its Kirkuk fields to Jordan, as part of a joint attempt to improve relations.

The flows, which account for 7 per cent of Jordanian imports, have been frequently interrupted, especially during periods of political tension.

Jordan, which produces very little oil, relies on Saudi Arabian

imports for most of its needs. A western diplomat said the latest halt was expected, given a deterioration in ties between Jordan and Tehran.

“The halt is part of an implicit Iranian threat that Jordan cannot expect to enjoy normal business exchange with Iraq,” the diplomat said.

Although Jordan depends on the US for aid and security, Amman does not publicly criticise Iran. Jordanian officials, however, privately say that Iraqi representatives cannot act on any improvement of ties with Amman without approval from Tehran.

An official in the Iraqi Oil Ministry confirmed the stoppage of oil exports to Jordan due to the agreement expiring.

He denied any political pressure or government plans to scrap the deal to sell oil at preferential prices to Jordan. “Efforts are under way to renew the deal and it could be very soon,” the official told