by Mohammad Ghazal | Dec 08, 2014

AMMAN — A Canadian company will soon start studies on the development of the Hamzah Oil Field in Al Azraq, Energy Minister Mohammad Hamed said Monday.

The company, Transeuro Energy Corporation, won a tender the government floated in early 2014 to develop the oil field, the minister said.

“Two international companies submitted bids and the Canadian company was selected,” he told The Jordan Times.

The ministry has already drafted an agreement with the company and sent it to Parliament for endorsement, Hamed said, adding that the deal is expected to be endorsed before the end of December.

Once endorsed, the government will sign an agreement with the company in January to start studies on developing the field, according to the minister, and the studies will be completed in two years.

“This project is very important for Jordan and we are keen on developing this field,” he added.

After studies are completed, the government will sign a 15-year concession agreement with the company for development and production.

According to the minister, production in the Hamzah Oil Field started in 1985.

It produces about 20,000 to 25,000 barrels of oil per day, he added.

Jordan, which imports about 97 per cent of its energy needs, floated an international tender early this year for developing the field.

Meanwhile, the minister added that oil imports from Iraq are still on hold since the beginning of this year due to the ongoing security conditions in Iraq.

Jordan, he added, imports crude oil and fuel from international markets, and — to compensate the quantities from Iraq — it has resorted to importing from Saudi Arabia.

Jordan’s oil imports from Iraq covered less than 10 per cent of the Kingdom’s daily needs, which amount to over 100,000 barrels.