Iraq: Security better for oil to Jordan

AMMAN, Jordan, March 11 (UPI) -- Iraq's ambassador to Jordan said security is stopping discounted Iraqi oil from being delivered and said an Iraq-Jordan pipeline is being studied.

Sa'd Jasim al-Hayyani, in an interview with the Jordanian paper al-Dustur, said the delay in executing the August 2006 deal to supply between 10,000 and 30,000 barrels per day has been hampered by the ongoing though improving security situation in Iraq.

"Iraq is committed to the agreement, which stipulates supplying Jordan with oil at a preferential price that is $22 less than the international prices," Hayyani said. He said contractors of the Iraqi-Jordanian Land Transport Co. are stalling because of security.

Last October the Jordan News Agency reported the first shipment of oil was unloaded at the Zarqa Oil Refinery. The oil from Kirkuk, Iraq, has an easier road to travel than previously, when insurgents controlled the western territory. An increase in U.S. troops and a new Iraqi security plan for the northern Iraq oil infrastructure has helped calm the situation some.

Hayyani said a prospective pipeline would help diversify Iraq's export routes and help supply Jordan's energy demand.

"There is a study to revive the project for laying a pipeline to transport oil from the Iraqi area of Haditha to the Port of Aqaba and the Jordanian petroleum refinery," he said.