International oil giants could be discouraged from investing in Iraq’s upstream hydrocarbon industry due to the lack of a clear project investment plan, an Iraqi deputy was reported on Thursday as saying.

Ali Mashkour, a member of Parliament’s Oil Committee, said Iraq is giving priority to the downstream sector, especially refining projects.

“Until now, there is no clear and concrete project investment plan in Iraq’s upstream sector except for investment opportunities in the refining industry and some concessions awarded within the fifth license round… the Oil Ministry is now preparing for the sixth round but there is no clear investment plan,” Mashkour said in a statement, published by Al-Iqtisad News and other networks.

Quoted by the Iraqi Takadum news network, he added: “I believe that we are going in the direction of losing big oil companies such as British Petroleum and Exxon Mobil.”

He referred to projects announced recently by the Oil Ministry for the construction or expansion of seven refineries with capacity ranging between 70,000 and 150,000 barrels per day.

Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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