Iraq and Jordan agree in principle to an oil pipeline project $5.6 billion

Live: the Iraqi oil Ministry Undersecretary said on Monday that the Iraqi Cabinet has agreed in principle to establish a Jordanian-Iraqi oil pipeline project, with a total cost of 5.6 billion dollars, citing Jordanian news agency Petra.

DIA Jaafar, predicted by agency, that the final contract is signed for the Convention, in the next two months, after review and confirmation of approval by both sides.

Jaafar said that the tariff rate is selected and the total project costs, as well as determine the duration of the project, which amounts to 25 years, according to the Agency.

Jaafar said, according to Petra, the cost of oil pipeline link between the two would be borne by the investor, not the Iraqi side or the Jordanian investor regains its costs through wage you would pay him the Iraqi Government.

Jaffer noted that the meeting between the Iraqi oil Ministry and legal department in the Iraqi Cabinet, with counterparts in Jordan within a week; for amendments to the Convention, according to Petra.

Former Energy Minister, in 2013, the importance of the project, that the Iraqi side will provide a new outlet for oil exports, and serves Jordan move 150, 000 barrels to Jordan petroleum refinery, plus another tube to move 100 million cubic meters of gas to Jordan will be used to produce electricity.

As the Minister said, then, that the implementation of the project will be reflected on the price of petroleum products in the Kingdom, lowering fares Iraqi oil via overland truck and deliver it to the second stage to the refinery in Zarqa.

The Iraqi Cabinet recommended, in November 2014, the Energy Commission on pipeline project exporting Iraqi oil across Jordanian territory, Jordanian side claim improved specification class fuel oil and crude the supply to them, as well as rebates and price adjustment.