The Jordanian government recently extended the April 14, 2002, deadline for accepting bids for the joint Iraqi-Jordanian oil pipeline project, reported Al-Hayat. Local and international companies now have until the end of May to submit their offers.
Some 30 Arab and international firms have expressed interest in bidding for the construction of a $365 million oil pipeline between Jordan and Iraq. Construction is expected to be completed 15 months from the date of selection, reported the Xinhua news agency.
Jordan will cover the cost of a 300-kilometer stretch of pipeline across its territories and Iraq will cover the remainder of the costs. With an estimated capacity of transporting 350,000 barrels of crude oil from Iraq to Jordan per day, the pipeline will be constructed on a build, operate and transfer (BOT) basis.
Iraq is the Kingdom's only source of oil and oil derivatives, importing five million tons in 2001. Jordan receives half of its oil from Iraq for free, while the remaining portion is sold to the Kingdom at a concession price, four to five dollars less than the world market price. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
