Jordanian Deputies Block Ratification Of Sonoran Energy PSA
A number of deputies in the Jordanian parliament last week refused to ratify the production-sharing agreement (PSA) signed last November between Jordan’s Natural Resources Authority (NRA) and Sonoran Energy (MEES, 28 November 2005) and returned the agreement to parliament’s energy committee. The PSA grants Sonoran the right to explore and develop the 11,250 sq km Azraq Block, east of the capital 'Amman, and to take over the operation of the Hamza field in the block, which is producing 30-40 b/d of sweet oil. Jordanian Deputy 'Abd al-Karim Dughmi said the terms of this deal should be improved, and questioned the wisdom of turning over the Hamza field to the company, when Jordan had spent some JD150mn ($211mn) on its development. Other deputies, like Muhammad Bani Hani and Ghalib Zu'bi, expressed concern over possible irregularities in the agreement. Replying to these reservations the Minister of Energy and Mineral Resources 'Azmi Khreisat said Jordan gave preferential treatment to foreign oil exploration companies in a bid to attract investment, noting that the cabinet in 2000 had decided to offer improved terms after the continuous rejection of these companies to explore in Jordan. According to Sonoran the Azraq Block contains up to 30mn barrels of oil reserves, but the NRA says only 4-5mn barrels are recoverable.
