Iraq to cut signature bonuses on oilfields

15 April 2010

Iraq's oil ministry has agreed to reduce signature bonuses on two oilfield development deals secured by oil companies, but is turning them into unrecoverable payments rather than soft loans, Reuters has reported. The signature bonus for the 8.7-billion-barrel West Qurna Phase One oilfield to be paid by Exxon Mobil and Royal Dutch Shell will be cut to $100m from $400m, while the bonus for the 4-billion-barrel Zubair oilfield won by Italy's Eni and its partners Occidental Petroleum Corp and South Korea's KOGAS will be $100m also, compared to $300m previously.

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