The Oil and Gas Committee of the Iraqi Parliament has voiced concerns over the recent awarding of oil and gas concessions to Chinese companies, citing their insufficient track record in the industry.
In a letter published by the Iraqi News Agency on Friday, the Committee stated, “The companies which were awarded the oil and gas concession sites by the Oil Ministry do not have a known record in the global oil industry.”
The Committee highlighted that the Oil Ministry has faced challenges in attracting established global oil firms, warning that the contracts with these lesser-known companies may present increased risks.
On Sunday, Iraq finalized agreements with six Chinese firms as part of its fifth and sixth licensing rounds. The country, which is the second-largest producer in OPEC, had previously announced in May that it would award 14 concession sites from a total of 29 offered to various companies, including those from China.
The Committee’s letter also indicated a significant increase in the presence of “small, non-Western companies” within Iraq’s oil and gas sector, now controlling around 75 percent of the nation’s hydrocarbon resources.
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