Iraqi PM to Jordan's: Oil deliveries a go

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BAGHDAD, Sept. 19 (UPI) -- Iraq’s prime minister has phoned his Jordanian counterpart to assure him a year-old and stalled preferred price oil deal will be honored.

Shipments are reportedly en route, but they’ve been delayed since the August 2006 deal signing because of the security condition in Iraq.

The Jordan Times reports Prime Minister Nouri al-Maliki called Mar’uf al-Bakhit to assure him Iraq oil at $18 below market rate would be delivered to the Jordanian border as promised.

Media reports this week said the tankers are en route, but there has been no confirmation. The deal, signed during Bakhit’s visit to Baghdad, would provide between 10 percent and 30 percent of Jordan’s demand of 100,000 barrels of oil per day.

Deliveries will probably start at 10,000 bpd and then increase.

This week Iraqi Ambassador to Jordan Sa’d Hayyani said the road between Kirkuk and Baiji in Iraq is too dangerous to risk tanker trucks driving to Jordan.

On Tuesday a pipeline between Kirkuk and Baiji was attacked just days after the U.S. and Iraqi government officials touted its repair as a sign of success.

Constant attacks on the pipeline, which ships oil to ports in Turkey, have rendered it virtually useless since 2003. A limited amount of oil has been sent to Ceyhan, Turkey, but now the pipeline is offline again.