Production bonus

{
  "id": "MLC-T-OAG-002951",
  "term": "Production bonus",
  "field": "Oil and gas",
  "definition": "A payment that a contractor or licensee owes to the host government or lessor when production first reaches a threshold named in the agreement, such as a daily rate or a cumulative volume. It is separate from a signature bonus, which is paid when the contract is signed, and from royalty on each barrel produced. Production bonuses appear mainly in production sharing contracts and licences, with amounts that typically step up at higher production levels.",
  "subject": "Oil and Gas Business",
  "url": "https://mlchart.com/terminology/oil-and-gas/production-bonus/"
}