February 5, 2003

Jordan Turns To Saudis

Jordanís King Abdullah headed for Riyadh on Tuesday to secure a Saudi offer to supply the Kingdom with oil in the event of a US-lead military campaign on Iraq. The beleaguered Gulf state is currently Jordanís sole source of oil and oil derivatives.

The King was scheduled to meet with Saudi Crown Prince Abdullah during his one-day visit to the capital, to discuss the repercussions of a possible war in the region, reported Reuters. According to Jordanian officials, King Abdullah hoped that the Saudis would live up to their pledge of satisfying Jordanís oil needs by presenting him with a detailed proposal including quantities and prices.

At the moment, 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. In the event that Iraqi oil installations are hit by American artillery, the Kingdomís annual five million tons of crude imports will be in jeopardy. US officials may also order its forces to interrupt Iraqi land traffic, blocking the2 , 500truck fleet that delivers12 , 000tons of crude daily to Jordan.

The US government is examining the possibility of allocating a major aid package to Jordan that would include emergency oil shipments. Although not final, US sources revealed that the nationís request for American assured oil reserves could be met with over one billion dollars in assistance. ó (menareport.com)

Posted by Ithildin at February 5, 2003 7:03 AM | PROCURE FINE OLD WORLD ABSINTHE