Jordan Deal for Syrian Oil Is Confirmed

The Jordanian government on Wednesday nailed down Syrian petroleum supplies to replace war-disrupted imports from Iraq and keep its staggering economy fueled, Jordanian officials said.

Amman will have to pay world market prices instead of the discount deal provided by Baghdad in recent years, but the supply line should be secure, the officials said.

Iraqi oil, brought into Jordan by tanker trucks, will continue to supply most of Jordan’s needs. But the trucks move at risk along the Baghdad-Amman highway, which has become a target of allied aircraft hunting for Scud missiles.

Confirming the agreement with the Damascus government, Information Minister Ibrahim Izzeddine said that Jordan will import fuel oil and gasoline from Syrian refineries. The facilities are not equipped to load crude oil.

The shipments will begin “at any time,” he said, and will be carried by Jordanian trucks. This will ease high war-related unemployment in the transport industry.

The Syrian deal is expected to supply about 8,000 barrels a day of diesel fuel. Jordan’s overall needs are estimated at about 30,000 barrels a day of crude and refined oil, down sharply from the level before the trade embargo on Iraq crushed the Jordanian economy, which was highly dependent on the Iraqi connection. Analysts expect Iraq to continue to supply about 6,000 to 16,000 barrels of the total.

Iraqi oil is sold to Jordan at a discount rate of about $16 a barrel, which is deducted from debts that Baghdad owes Amman for supplies during the 1980-88 Iran-Iraq War. Costs for Syrian petroleum will be set according to the world price for crude, currently about $22 a barrel.

Jordan has no oil of its own, but officials say its imported strategic reserves are sufficient for several months, particularly at the reduced energy levels established under a conservation program last month. The program has limited daily driving of cars and trucks, under an odd-even system based on license plate numbers, and trimmed power generation by reducing lighting in government buildings.

“We are not really worried about our continued consumption,” Izzeddine said.

Meanwhile, Izzeddine disclosed that the government has bought an oil tanker for $7.5 million from a Singapore firm. It will be based at the southern port of Aqaba for use either as a floating storage tank or to ship in crude from other oil producers, again at world prices.