Cheaper Iraqi Oil for Jordan to Alleviate Burden of Refugees

The Jordanian AmmonNews.net – a relatively new and independent online news source – reported today that the Iraqi government has, by signing deals with Jordan, agreed to export crude oil to its neighbor at a reduced rate of $18 less than the international price. Citing statements given by Iraqi officials to the Iraqi press, AmmonNews indicates that this reduction is largely being undertaken to help alleviate the economic burden of Iraqi refugees in Jordan, and to ease the circumstance they face there.

Last week, the Jordan Times reported that the Iraqi government was reconsidering an oil deal with Jordan based upon a memorandum of understanding signed between the two countries in 2006, which outlined terms for agreements on oil. Apparently, there had been a previous arrangement between the kingdom and the Saddam Hussein regime, which became void after the US-led invasion in 2003. The same article from the Jordan Times also indicates that the presence of Iraqi refugees in Jordan has incurred a cost of 1.6 billion Jordanian dinars, about US$2.26 billion, over the past three years.

The AmmonNews report, citing a UN source, states that the number of Iraqi refugees in Jordan fluctuates between 700-800,000 people. It also mentions, citing a spokesperson from the Ministry of Oil, that Jordan will import between 70-100,000 barrels of oil per day, while the country's need for oil has increased by 30%.