Iraq has agreed to supply Jordan with 10,000 barrels-per-day of crude oil under preferential terms set in an accord signed this week, officials said on Thursday.
Minister of Industry and Trade Sharif Zobi told reporters the deal was signed during a visit by Jordanian Prime Minister Marouf Bakheet to Baghdad last Tuesday to bolster bilateral ties.
"Jordan and Iraq agreed during the talks with Iraqi officials on a memorandum of understanding under which Iraq supplies Jordan with 10,000 barrels-per-day of crude at preferential basis," Zobi said.
Officials remained tight-lipped about details of the accord that would cover, when implemented, almost 10 percent of the country's energy needs of around 100,000 barrels-per-day.
But industry executives expect the deal will involve along with a discount formula that offers the crude at below market prices a barter deal that involves Jordanian products.
The oil supply deal would be the first official arrangement since the ending of cheap Iraqi energy supplies Jordan had relied on before the US invasion of Iraq in 2003.