Jordan signs two new oil deals

oil-explorationA committee to promote areas in southern Jordan for oil exploration in cooperation with the Natural Resources Authority would also be soon formed, the Cabinet announced. (Image source: porchife/Flickr)The Jordanian government has signed new oil exploration agreements with firms from Saudi Arabia and Korea

The first of the two deals was inked with the Saudi Arabian Oil Shale Company for the distillation of shale oil.

The company has already conducted a feasibility study for the Atarat Umm Ghadran area, including geological excavations and assessments of the environmental impact of the project.

The production capacity would start at 2,650 bpd, reaching 30,000 bpd over a period of four to eight years. The project has been estimated to cost US$1.93bn.

The Jordanian cabinet also approved a co-production agreement with the Korea Global Energy Corporation for oil exploration in the Dead Sea and Wadi Araba areas, according to a Jordan Times report.

The corporation would carry out exploration work across a 6,819 sq km area in three phases.

Under the agreement, the South Korean company will implement its contractual obligations for the four-year exploration phase, during which it will conduct geological studies of the area, including a seismic survey and the drilling of three wells for oil exploration.

A committee to promote areas in southern Jordan for oil exploration in cooperation with the Natural Resources Authority would also be formed, the cabinet announced.

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