Iraq’s Supreme Federal Court has dismissed a lawsuit filed against Prime Minister Mohammad Shia al-Sudani to halt subsidized crude oil exports to Jordan.
The Iraqi judiciary said that the court lacks jurisdiction over the case.
The complaint was filed by nine lawyers against Sudani, regarding “preferential prices” at which Iraq sells its oil to Jordan. The lawyers believe that export operations of this type violate the constitution and are a waste of the country’s resources.
For years, the issue of selling oil to Jordan at preferential rates has faced resistance by some political currents and forces, especially in the Shiite arena. The file has often been used as a pressure card by some political parties against the successive prime ministers.
The lawyers, who filed the case, noted that the government signed an agreement with the Jordanian side in 2021, stipulating the export of 10,000 barrels per day (bpd) at preferential prices of $97 per barrel, compared to the official price in global markets, which was $113. This made Iraq lose about IQD 198 billion monthly (about $1.5 million), they said.
But the court dismissed the case, after challenging the price difference mentioned by the lawyers by relying on the plea submitted by the defendant.
According to the plea, the agreement between Iraq and Jordan does not exceed the limits of the Memorandum of Understanding, and the Federal Court does not have the capacity to review it.
The MoU stipulates that Jordan will import 10,000 barrels of crude oil per day (bpd) at a discounted rate of $16 per barrel less than the monthly Brent crude rate, to cover quality differentials and transportation costs.
According to Iraqi and Jordanian oil sources, approximately 60 oil tankers cross the border into Jordan through the Trebil border crossing, to supply 10,000 bpd of Kirkuk oil to the Jordanian oil refinery, which constitutes 15 percent of Jordan’s daily oil need. The total Iraqi oil exported to Jordan amounts to about 3.7 million barrels annually.
On a different note, the Ministry of Oil announced on Sunday the signing of a gas investment and processing contract in the Nahr Bin Omar field, in the south of Basra governorate.
The Ministry stated that the contract was concluded between the South Gas Company and the Halfaya Gas Company Limited.
