Iraq has agreed to extend the crude oil processing agreement with Jordan until June 26, 2025, according to Jordan's Energy and Mineral Resources Minister Saleh al-Kharabsheh.

Under the terms of this agreement, Iraq will sell Kirkuk oil to Jordan at $16 less than the price of Brent crude, with Jordan importing up to 15,000 barrels of oil per day by tanker.

Minister al-Kharabsheh highlighted that the extension of the memorandum, originally signed on April 5, 2023, stipulates that Jordan's oil imports from Iraq will meet 10 percent of its domestic needs.

This agreement aims to enhance economic cooperation between the two countries, improve the land route between Jordan and Iraq, and create more job opportunities.

Jordan imports Kirkuk oil, which is of lower quality and price compared to Iraqi oil from the south and Brent crude. Despite the lower quality, Jordan benefits from the discounted price and covers the transportation costs.

The continuation of this agreement underscores the mutual economic interests of both nations and is expected to further strengthen their bilateral relations.