Invitation to Bid Issued for Land-Based Transport of Iraqi Crude Oil to Jordan

The Ministry of Energy and Mineral Resources (MEMR) on Tuesday announced a tender for the provision of Iraqi crude oil transportation services, according to Assistant Secretary-General for Energy Affairs, Hassan Heyari.

Commencing today, the tender invitation copies are available for purchase electronically via the Ministry’s website, running until Wednesday, May 31, at noon. Prospective bidders are given the opportunity to forward their inquiries to Hana.AlZuabi@MEMR.GOV.JO until 12:00 noon on Tuesday, June 6, 2023.

The deadline for submissions is set for noon on Thursday, June 15, 2023.

Interested parties can secure a copy of the purchase document for 2,500 dinars, payable electronically via the e-Fawateercom application or through other bank applications for electronic payment.

The purchase documents will be provided to the company representative upon presentation of an official authorization issued by the company.

Heyari emphasized that applicants must hold a valid license for transporting crude oil and its derivatives via road tankers, issued by the Land Transport Regulatory Authority.

Furthermore, the applicant should be classified under the first category according to the instructions for licensing and classification of carriers and freight brokers on the roads.

“The purchase request can be obtained electronically through the Ministry’s website,” he added.

This announcement comes on the heels of a memorandum of understanding between Jordan and Iraq earlier this month, outlining provisions for the supply and transportation of crude oil.

The agreement sees Jordan importing 10,000 barrels per day (bpd) of crude oil at a reduced rate, $16 per barrel less than the monthly Brent crude rate. This price reduction covers quality differentials and transportation costs, as clarified in a ministry statement.

Between September 2021 and the end of March 2023, the Kingdom has already imported approximately 4.5 million barrels of crude oil from Iraq, averaging around 9,992 barrels per day.

The new agreement and the launch of this tender process aim to formalize and secure this oil relationship, potentially leading to a significant impact on Jordan’s energy security.

Source: Jordan News Agency