JORDAN'S ENERGY MINISTER CONFIRMS CONTINUATION OF

UNCLAS AMMAN 003512 SIPDIS SENSITIVE NSC FOR ADNAN KIFAYAT NEA FOR DAS SATTERFIELD E.O. 12958: N/A TAGS: EPET ETRD PREL KU SA JO TC SUBJECT: JORDAN'S ENERGY MINISTER CONFIRMS CONTINUATION OF GRANTS REF: NEA/ARN-AMMAN EMAILS OF 6/11/03 AND PREVIOUS Sensitive But Unclassified; please protect accordingly. ¶1. (sbu) Minister of Energy and Mineral Resources Mohammed Batayneh confirmed on June 12 press reports that the GOJ had reached agreement with Saudi Arabia, Kuwait, and the UAE on a 3-month extension to the deal reached prior to the war to supply Jordan with concessional oil. Batayneh said the deal would continue to be for 100,000 bpd equivalent, NOT/NOT 120,000 bpd as reported in the press. Batayneh said the terms of the deal would remain as before, with Saudi Arabia supplying 50,000 bpd of crude, Kuwait 25,000 bpd, and the UAE the cash equivalent of 25,000 bpd. ¶2. (sbu) Comment: 100,000 bpd is roughly equivalent to Jordan's consumption needs. There would be little, if any, excess oil imported into Jordan under the extended deal, with any excess most likely being represented by unused cash from the Emirates' contribution rather than unused crude. End comment. GNEHM