BAGHDAD, March 6 (UPI) -- Jordan is unable to clear the violence in Iraq and pick up its discounted oil amid reports the Iraq Oil Ministry wants to renege on the deal.
Azzaman reports violence in the west of Iraq is making it increasingly hard for Jordan to enter Iraq, pick up the oil in Baiji, northwest of Baghdad, and then take it back to a refinery near Amman.
Jordan and Iraq had reached a deal for between 30,000 and 60,000 barrels per day at $10 a barrel, the Al-Dustur newspaper reported in October.
An unnamed official within the Jordanian Ministry of Energy and Mineral Resources told Al-Dustur an agreement for oil has been signed but is too dangerous to carry out.
Iraq Oil Minister Hussein al-Shahristani said Iraq and Jordan will restart shipments when the security condition improves. He also dismissed reports he intended to renegotiate the deal.
Violence has marred Iraq's oil sector, like the rest of the country. It has the third highest oil reserves in the world though production was only 1.7 million bpd in January. Production was 2.6 million before the war. Oil exports have been hit by the violence and inconsistent electricity supply. Neglect over the past three decades has also hampered development.
