File 10/5 II Hasa oil: CASOC's activities in Hasa; development of Ras Tannura; Political Agent's visit to Hasa [‎174] (351/656)

8. The consideration paid and to be paid for ese extensions of
company's area of operations appears very liberal, ,0,000 gold is payable at
once; thereafter an annual rental of £20,000 is to be paid; and whenever oil
commercial quantities is discovered in the additional areas a further sum of
£100,000 gold will be paid. From July 1940 onwards, until oil is discovered in
the new areas, 1,300,000 gallons of gasoline and 100,000 gallons of kerosene will^
presented to the Saudi Arabian Government, and after such a discovery is made
the amount of gasoline will be increased by 1 million gallons. I have not heard
what actual sum in cash has passed; it is clear from the last words of article 4
that the rental due under the 1933 agreements had been overpaid, and I should not
be surprised to learn that advances have been made on account of the increased
sums which will be payable in future.
9. I am sending copies of this despatch and the enclosure to His Majesty 's
Ambassador at Bagdad, and to the Hon. the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the Persian
Gulf at Bushire.
I have, &c.
A. C. TROTT.
Enclosure.
THIS agreement is made between his Excellency Sheikh Abdulla Sulaiman-
al-Hamdan, Minister of Finance of Saudi Arabia, acting on behalf of the Saudi
Arab Government (hereinafter referred to as the " Government ") of the one part,
and William J. Lenahan, acting on behalf of California Arabian Standard Oil
Company (hereinafter referred to as the " Company ") of the other part.
It is hereby agreed between the Government and the Company in manner
following :—
A rticle 1.
This agreement, known as the Supplemental Agreement, is supplemental
firstly to the agreement (hereinafter referred to as the '' Saudi Arab Conces
sion ") made between the Government of the one part and the Standard Oil
Company of California of the other part and signed on the 29th day of May, 1933
(corresponding to the 4th day of Safar, 1352, a.h .), and secondly to the Letter
of Agreement (hereinafter referred to as the " Second Principal Agreement")
addressed by L. N. Hamilton, on behalf of the Standard Oil Company of
California, to and accepted by his Excellency Sheikh Abdulla Sulaiman-al-
Hamdan, on behalf of the Government, and bearing the same date as the Saudi
Arab Concession.
A rticle 2.
The Saudi Arab Concession and the Second Principal Agreement have been
duly transferred to and vested in the " Company " (party hereto) after notifica
tion to and with the consent of the Government, all in accordance with article 32
of the Saudi Arab Concession, and the Company has duly undertaken and fulfilled
to date the duties and obligations of the '' Company '' thereunder.
A rticle 3.
On the 16th day of October, 1938 (corresponding to the 22nd day of Shaaban,
1357, a.h .), the Company declared, under article 10 of the Saudi Arab Concession,
that oil had been discovered in commercial quantities, and that all the obligations,
of the Company attendant upon such declaration have been duly fulfilled to date.
A rticle 4.
Both the Government and the Company are now desirous of adding to and
otherwise extending the territory granted to the Company by the Saudi Arab
Concession, and of making such other modifications and alterations to the Saudi
Arab Concession and to the Second Principal Agreement as hereinafter appear
and the Company has undertaken to make, and the Government have consented