OREANDA-NEWS. May 06, 2010. The Jordanian government was scheduled to approve an agreement on the development of oil shale deposits with the Estonian company Eesti Energia that is due to be announced during the Estonian president's visit to that country.

Jordan's Minister of Energy and Mineral Resources Khaled Irani said the government will officially announce the key deal with the Estonian company on May 11th in the presence of the Estonian president, Jordan's state news agency Petra said.

The director general of Jordan's natural resources authority (NRA), Maher Hijazin, earlier told Petra the extraction of oil shale is planned in the southern Attart Um Ghudran area.

The Estonian company is estimated to produce 36,000 barrels of oil a day, Hijazin said, adding that the venture will reach its full commercial production capacity within ten years at an estimated cost of 6 billion dollars.

In addition to extracting oil, Eesti Energia will generate 600-900 megawatts of electricity. That project is due to be forwarded to the government by the end of 2011 so that construction of the power plant to generate electricity can start by 2015, the Jordanian agency said.

According to NRA estimates, Jordan has 40 billion tons of oil shale deposits in various areas.

Eesti Energia has previously said it hopes to conclude a long-term agreement with Jordan concerning the utilization of oil shale.