'Historical Summary of Events in the Persian Gulf Shaikhdoms and the Sultanate of Muscat and Oman, 1928-1953' [‎84r] (172/222)

76. It may be noted that the Rulers other than Umm al Qaiwain and
Fujairah have accepted responsibility for the safety of survey parties of Petroleum
Development ( Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. ) Ltd. in their territory and have undertaken to punish
the culprits and pay compensation if such parties are attacked.( 55 ) A specimen
undertaking is included in the Appendices (Appendix G).
(b) Abu Dhabi
77. The Ruler of Abu Dhabi granted a concession to Petroleum Development
( Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. ) Ltd. on January 11, 1939.( 56 ) The text of it had not previously
been agreed with His Majesty's Government and there was some discussion about
its terms but it was finally approved in its original form in May 1940.( ;7 ) The
Ruler was not required to take cognisance of the Political Agreement^) between His
Majesty's Government and the Company which was based on it. The concession
covers the whole territory subject to the rule of the Ruler of Abu Dhabi and its
dependencies and all its islands and territorial waters and provides that if in the
future there should be carried out a delimitation of the territory belonging to Abu
Dhabi, by arrangement with other governments, then the area shall coincide with
the boundaries provided in such delimitation. There is a further provision giving
the company oil rights in the Ruler's share of any Neutral Zone which may be
formed adjacent to his territory. The annual payment to be made to the Ruler
until the discovery of oil in commercial quantities is Rs. 100,000, but this sum is
liable to be increased by 25 per cent., if the company does not discover a drilling
location within four years and thereafter by a similar percentage every three years
if the company does not begin drilling or surrender its rights.
78. A well was drilled at Ras Sadr east of Abu Dhabi in 1950 but no oil was
discovered. Relations between the Ruler and the company at this time were not
very happy partly because of the dispute over the sea-bed concession (paragrapn
79 below). ' Strikes amongst local employees, believed to have been fomented by
the Ruler, occurred at Ras Sadr and the Royal Navy had to be called in to stabilise
the situation. In 1953 another well was drilled at Murban near Tanf west of Abu
Dhabi close to the frontier claimed by the Saudis, Oil was discovered but the
company had not yet stated by the end of the year whether it was available m
commercial quantities. From the autumn of 1951 until Apn westerrTand
were restricted from operating in the area claimed by the Saudis ' n ' h ® weste ™ ®^
southern parts of Abu Dhabi territory the ownership of which was under dispute
with the Saudis (paragraph 98 below).
79 In Tune 1949 the Ruler issued his declaration of jurisdiction over the
sea-bed Petroleum Development ( Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. ) Limited claimed that their
concession automatically gave them rights 'f ' he
Dhflhi tprritnrv The Ruler refused to accept this contention and me dispute was
SrfTSLrSo.*" provided to. i. «o«~ ZS
place in Paris in August 1951 when it was
included the subsoil of the territorial waters
islands) but not the subsoil of the submarine ^^on guous with Abu Dham
rmtdHp thp territorial zone Meanwhile the Ruler had on Uecemper z, ivdu
granted a concessSn fo? his'sea-bed for 65 years to the Superior Oil Company, an
grantea a concession ioi iiij> n. i 000 000 down with an annual payment
American company, onpaymenofRs. 1 the . proceeds of s ^ s ... r)
of the same amount al Y'o a Political Agreement with His Majesty's
The company had previously entered into the Ruler agreed in writing t0
Site" SS SSycoM not .fiord turtlrer m-eetment i» the .re.,
. , u.r Qnnerinr Oil Company of the concession the
80. On the relinquishment y p ^ Ruler granted a concession
Anglo-Iranian Oil Company ente D '^ rC y Exploration Company, for a period
on March 9,1953 to their associate, the U Arcy nxpiui a F
O I O ,0 FO P.Z. 939/37 of February 16. 1937 (E 1000/12/91 of 1937).
P) lO loFO ^fz. 2505/40 of May 9, 1940 (E 360/360/91 of 1940).
' R P. 0 R. 2 to V F.a A 1 C 535/I5 of March 22. 1951 (EA 1272/20 of 1951).
( 60 ) (EA 1273/31 of 1950.)