Week 2: Assignment 1

Eesti Energy signs major deal with Jordan: Lease to last 50 years

By Joseph Hammond

            The historic agreement signed last month between Jordanian Prime Minster Samir Al-Rifaee and Estonian Prime Minster Andrus Ansip over the Wadi Attarat Um Ghudran oil shale deposit in Central Jordan.  The signing caps four years of negotiations and formally mark Eesti Energy’s expansion into Jordanian oil shale and power production.

The project involves $6 billion dollars and commercial production is somewhere between 5 and 7 years away. Once the the Attarat site is operation, Tallin-based Eesti Energy plans to produce between 20-36,000 barrels of oil each day. The lease on the site will run for 44 years and leaves open the possibility of expansion to an additional 10 years.

Modern oil shale production in Estonia began over 90 years ago in 1916. Today, Estonia is one of (if not the) leader in the development of oil shale. Estonia develops 90% of its power from oil shale and 17% of all shale oil deposits in the European Union are in Estonia. In 2005, Estonia lead the world in Oil Shale production before subsequently be displaced by China.

Estonia operates two of largest oil shale fuelled power plants in the world in Estonian border city of Narva. In fact 90% of Estonia’s energy needs are met through oil shale and Estonia provides electricity to Finland and the rest of the Baltic states.

Estonia’s talent and depth in oil-shale production is matched by the size of Jordan’s significant oil shale deposits. Oil-shale has been discovered in 26 locations across the country and preliminary findings indicate that as much as 60% of the country may sit on oil shale. Like Estonia, Jordan first modern oil shale was conducted during the tumultuous events of World War I, when the Imperial German Army began production on a site near Yarmouk in Northern Jordan to support the Hejaz Railway.

Currently, Jordan is desperate to become more energy independent.  Jordan imports 97 percent of its energy needs.  Jordan hopes to get 11 percent of its energy from domestic sources by 2015 and a further 14 percent by 2020. Jordan is one of several Middle Eastern countries looking to develop shale oil in the near future. Others include Morocco and Israel.

In a separate meeting between the Estonian Prime Minister and King Abdullah, The Hashemite monarch pledged to expand not only energy ties but tourism and investment ties as well between the two countries.




1) First link is a link to Estonia's Eesti Energy company. While the site is in Estonian translation is readily available and I think its an important link for people who want to lean more about this important company


2) Second Link: A great report about oil shale in Estonia and its importance. Information supports assertation that Estonia is an innovator in oil shale.


3) Third Link: A link to my source of information about the meeting with King Abdullah from the Jordan Times. A source I know to reputable when I was a member of the press corp. in Amman.