Jordan National Resource Authority

Interview with H.E. Maher Al Hijazin, Undersecretary of National Resource Association

Can you tell us more about Jordan’s natural resources and how you intend to utilize them in the future? 

Oil shale in Jordan covers about two thirds of the country and some of it is unexplored. Jordan has been leading a policy to attract everybody who has interest in oil shale and has experience with it. We managed to have an agreement with Shell International to use their in-situ technology to exploite the deep oil shale. If this project succeeds in the coming decade then that will turn Jordan into a net-exporting oil country. We also have a company that has great experience in exploiting oil shale; they have already started the work and expect within the next decade to produce something like 40,000 barrels. Other companies exist with the Canadian and Russian technology. Jordan is leading the world in this respect, but it takes time, investment, and patience.

Can you mention some of the success stories of international companies coming to Jordan and being profitable and successful?

As I mentioned, Shell has an agreement with Jordan which has a great prospect. Its story started last year, and lets hope that it will be a success and a model for the rest of the world. In oil shale exploration and exploitation, we have British Petroleum in the East of the country that we signed with to develop a small gas field, and BP is optimistic to develop this field to satisfy at least the needs of the country. I think Jordan is a hub for the region; we have various regulations which attract investors and a well-qualified work-force. All that, when it comes to investment, means a conducive atmosphere.

What kind of investment would you like to see coming to Jordan?

We would definitely like to see more investors in the field of oil shale. Also, we would like to see more in oil exploration; Jordan is unexplored when it comes to conventional hydrocarbon resources. The mining sector also is a promising sector; it constitutes 15% of our GDP and has the potential to grow. We would like to see international companies coming and investing in the mining sector. We have the setup regulatory-wise and policy-wise to attract foreign investors in this field. In terms of natural resource, uranium deposits exist in Jordan, and the French Company AREVA is now exploring the uranium deposits, but there is room for other companies to invest in exploration and exploitation. We have excellent silica sand deposits and basalt deposits, as well as other untapped resources.

What are the real challenges you face?

We would like to be enabled much more to look for energy resources, but we work within fabrics of the government that have certain restrictions when it comes to budgetary flexibility, and financial means. Definitely we are moving to attract investors in various fields, and our policies and regulations are changing all the time to accommodate local and foreign investors. Hopefully before the end of this year we’ll have a new law when it comes to natural and energy resources, and the aim of this new law is to attract more investment in the energy sector. This new law touches on environment, investors’ privileges, and separates the regulatory part from the execution part which is very important for any investor to feel he is being treated fairly in any country.

How do you see your sector in the long term; maybe a 5-year projection?

We have taken the steps for investment in the sector, and within the coming few years I feel we will have an oil shale industry here in Jordan leading the world. I feel the potential will be bigger and bigger once the commercial plant is working in Jordan. Also in the mineral sector I see more investment coming towards Jordan, and the mining or mineral sector will contribute even more to our economy. All the various oil shale companies that are working in Jordan have done a technical and economical feasibility study in Jordan to see the potential and exploitation possibilities. Oil shale is considered an expensive hydrocarbon to extract in general, and anything conventional like $60 per barrel would let these projects move on. $60 is the breaking point for the industry. Let’s not forget that shale oil extracting plants which exist today in the world are limited and small, so let’s hope that the first large commercial oil shale project will be in Jordan in the coming few years.

What is your projection for the prices of oil in the future?

This is a very difficult question to answer, but from a geological reserves perspective, the trend of the price of oil should be on the increase. Other factors play a role in the prices of oil, but from a geological point of view, the trend is to go into unconventional hydro carbon resources like heavy oil, tar sand, oil shale, shale gas and so on.

When are you going to start producing oil from shale?

I think within the coming five years we will start to see the first production commercially of shale oil from oil shale. We feel it’s the future for Jordan. In addition, we have moved on to direct burning to generate electricity from oil shale with the Estonians. Oil shale projects, if they succeed, will change the entire energy situation and economics of Jordan.

Do you feel that Jordan has competitive reserves of oil shale compared to other countries?

I definitely feel we have the edge. We have a proven reserve which is the fourth in the world. If we assess all of our reserves properly we would probably move even higher up on the ladder. The type of oil shale we have and the regulations we have devised for the industry are very attractive for the companies. The result is that we see companies coming to Jordan, Jordan is becoming the Mekkah for oil shale investments.

Is it a concern to have all these multi-national companies exploiting Jordan without a national Jordan oil company in charge of these reserves and saving this money for Jordan?

As I mentioned, the reserves are huge and would last Jordan hundreds or thousands of years. All these agreements with multi-national companies and international companies take care of what you have mentioned be it environment, employment, or local communities development. We have devised a model for the industry that is balanced, fair and sustainable for a long time to come.
We really hope for the development of a national oil company. The technology for oil shale is limited to a few companies around the world. Part of the indirect benefit for Jordan is technology transfer, so we hope to one day have Jordan take the flag and go around the world exploiting oil shale.

What message would you like to convey to our international audience?

Jordan is an attractive country when it comes to resources, especially in oil shale and other minerals. We have the setup and regulatory policies that are attractive from an investor’s point of view. We have a well-educated workforce which would help these companies to establish their industry here.