| The Ministry of Energy and Mineral Resources (MEMR) is responsible
for securing the country’s energy needs from various foreign and indigenous
sources. Under the auspices of MEMR, the Natural Resources Authority (NRA)
is responsible for all activities related to the exploration and development
of minerals and hydrocarbon deposits and it is entitled to lease rights
for the exploration and exploitation of oil and gas. of areas to third
parties. The Jordanian National Petroleum Company (JNPC) was established
for the exploration and exploitation of oil and gas. Its objective is to
negotiate joint ventures with international companies for the generation
of investments, as well as to ensure the flow of new equipment and technology.
According to the agreement signed with the NRA, JNPC and foreign companies
are involved in exploitation activities.
Currently, Jordan imports almost 97% of its needs from Iraq. MEMR is
responsible for importing crude oil. The transportation of oil is a major
problem because it is carried out via tanker trucks, causing serious pollution
problems, traffic congestion and deterioration of the road network. In
1998, Jordan and Iraq agreed to construct a 400-mile pipeline with an initial
capacity of 100,000 bbl/d to carry oil to the existing Jordanian refinery
in Zarqa and the planned new refinery in Aqaba. The Zarqa refinery has
a capacity of 95,000 bbl/d and can meet current consumption needs. The
Jordan Petroleum Refinery Company (JPRC) is a public share holding company
of which 14% is owned by the government. The Company is responsible for
all downstream petroleum activities such as oil refining, storage, transportation
and distribution. The MEMR and JPRC are the two authorities that monitor
the oil products market; prices are regulated by the MEMR. The JPRC is
regulated by the MEMR in accordance with a concession agreement, which
expires in 2006. The estimated nominal output of JPRC is about 4-5 million
tons per year. The JPRC plans to increase its crude oil processing capacity
in order to meet future petroleum products requirements. MEMR is also examining
the possibility of constructing a new refinery, which will be export-oriented
with a capacity of 250,000 bbl/d.
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