Jordan has no oil resources of its own and relies entirely on imports. 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. Jordan is exploring the possibility of diversifying its supplies by importing oil from Saudi Arabia and other neighboring countries. Jordan also started drilling for oil and gas in its territories. Agreements were also singed with US companies for oil exploration in northern, western (Dead sea) and central Jordan. Jordan has small amounts of proven oil and gas reserves, large oil shale deposits, some tar sands, a small hydropower potential and a few low temperature geothermal sources. The country produces about 25 barrels of oil per day and about 30 million cubic feet per day of natural gas which fuels 4x30 megawatt (MW) gas turbine plant .

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. 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, the foreign companies and JNPC are involved in exploitation activities.

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 responsible for all activities relating to natural gas. Under the auspices of the MEMR, the NRA is responsible for all activities related to the exploration of natural gas. NRA has the right to lease exploration and exploitation rights to third parties. At present the JNPC is exploiting the only gas field existing in Jordan according to the agreement signed with NRA.