Iraqi parliament's Oil and Gas Committee has raised objections to the recent awarding of oil and gas concessions to Chinese firms, stating the companies lack a significant track record in the sector.

“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 said in a stamped letter published by the Iraqi News Agency on Friday.

It said Oil Ministry's has struggled to attract established global oil companies and warned that the contracts may involve heightened risks.

Iraq signed agreements with six Chinese firms on Sunday as part of the fifth and sixth licensing rounds. OPEC's second-largest producer had announced in May it was awarding 14 concession sites to various firms, including Chinese entities, from a total of 29 sites offered.

According to the Committee’s letter, the recent contracts have led to a surge in the involvement of “small, non-Western companies” in Iraq’s oil and gas sector, with these firms now controlling approximately 75 percent of the country’s hydrocarbon resources.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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