Baghdad bumps up bonus costs

Iraq's Oil Minister, Hussain al-Shahristani, speaks at a press conference in Baghdad, Iraq, Monday, June 30, 2008. The Iraqi government announced the opening of six oil fields for bidding from international firms in order to boost production. (AP Photo/ Khalid Mohammed)

Confirmation: from Hussain Shahristani

KHALID MOHAMMED

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By News services

 27 April 2009 09:50 GMT

Iraq has bumped up the amount international players taking part in its first bidding round will have to stump up in signature bonuses for the six oilfields and two gas fields up for grabs, final tender documents revealed.



Baghdad is now asking for a total of $2.6 billion in signature bonuses, according to the final tender protocol submitted by the ministry to pre-qualified international oil companies on 23 April, a Platts report said.

Platts said the document shows that signature bonuses for the contract areas have been raised substantially. A table included in the protocol shows that the bonuses range from $200 million for each gas field to $500 million for the Rumaila oilfields.

The $2.6 billion total is to be paid, with interest, over five years. The first…

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