Iraq has agreed to extend its crude oil processing agreement with Jordan until June 26, 2025, as announced by Jordan's Energy and Mineral Resources Minister, Saleh al-Kharabsheh. This extension underscores the ongoing economic cooperation and mutual benefits for both nations.

Under the terms of the agreement, Iraq will sell Kirkuk oil to Jordan at a discounted rate, priced $16 less per barrel than Brent crude. Jordan is set to import up to 15,000 barrels of oil per day via tanker, which will meet 10 percent of its domestic oil needs, as highlighted by Minister al-Kharabsheh.

The memorandum, originally signed on April 5, 2023, aims to enhance economic ties, improve the land route between the two countries, and create job opportunities. Jordan benefits from the discounted price of Kirkuk oil, despite its lower quality compared to oil from southern Iraq and Brent crude. The transportation costs are also covered by Jordan, making the agreement economically advantageous.

The continuation of this agreement signifies the strong bilateral relations between Iraq and Jordan, reflecting their shared economic interests. The extension is expected to further bolster the cooperation and mutual support between the two countries.