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'File 82/1 [I] (F 52) A.P.O.C. and Oil Concessions Arab Coast' [‎61r] (121/307)

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The record is made up of 1 file (151 folios). It was created in 30 Jun 1921-30 Apr 1923. It was written in English. The original is part of the British Library: India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. Records and Private Papers Documents collected in a private capacity. .

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Downing Street.
February, 1922,
IWj
(&
MANAGING DIREOTOR
tNGLO-PERSIAN OIL COUPANY.
Sir,
I am directed by Mr. Secretary Churchill to acknow-
ledre the receipt of your letter of the 6th of January
— . No. HSC/OFF, regardine the application of y9ur Company
for the grant of prospecting licences for oil and its
allied products over certain areas of the Arabian
littoral and the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. and with regaro. to the
points raised in paragraph 2 thereof to inform you tnau
the Resident of the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. is bein^ instructed
to take an early opportunity of nep-otiatin§ witn the
Sheikhs of the Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. conventions similar to^
those obtained from the Sheikhs of Koweit and Bahrein.
2. After full consideration, Mr. Churchill is
disposed to concur in the view set forth in your letter,
that the grant of exploration licences should be accom-
pani ed by on agreement w'th the Sheikhs concerned
determining in advance the extent of their participation
in the profits which will eventually accrue from the
development of the local oil resources under the
exploitation lease ultimately granted to this Company.
3. This participation should^ in the opinion of
Mr. Churchill, take the form of royalties based upon
the net output of crude oil ajid in this connection, he
would suggest in the special circumstances^the payment
half -yearly of a flat rate royalty of Rs. 3 per ton oi
net crude oil (i.e. after * deducting water and foreign
substances and oil required for the customary operation
of boring plant) received into the Company 's ^ield
storage tanks and reservoirs: plus a variable bi-annual
payment indicated in the accompanying schedule and based
on the average wholesale price at Bombay of kerosene
throughout tne period in question. The fixed rent^or
minimum ioyalty would be put atRs. 30,000, for which
an equivalent amount of oil might be taken.
4. Should the sum of the royalties drawn in one year
^ by the Sheikh equal or exceed Rs. 30,000 no fixed rant
will be paid by the Company, but should these royalties
orove to'be less than that amount the fixed rent would
nevertheless be payable. In addition an annual surface
rent of 12 annas per acre on land occupied by^the
Company under the terms of the mining lease will be
charged.
5. Mr. Churchill does not consider that it will be
necessary in this agreement to incorporate^any detailed
provisions based upon the accepted Colonial models, gover
ning the conditions under whicn the work of the Company:
will be conducted since such provisions may be determined
when the actual grant of the mining lease is under
consideration. He considers^ however, that under this
Agreement, the ri^ht should oe reserved to the Sheikh,
acting on the advice of the Resident to terminate the
concession in the event of the failure on the part of the
Company to fulfil such working conditions as may eventual
ly be agreed upon or to produce adequate royalties.
6.

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Content

The file contains correspondence and telegrams between the Political Department and the Under Secretary of State at the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. in London, Sir Winston Churchill (Secretary of State for the Colonies at the time), 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. at Bushire, the Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. at Kuwait, the Vice-Consul at Mohammerah [Khorramshahr, Iran] and Anglo Persian Oil Company (APOC) representatives regarding contacts with local rulers about oil concessions in Bahrain and Kuwait.

The file also contains:

The file is incomplete. Some letters, mainly containing pledges signed by Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. rulers not to grant any oil concession to anyone except with the permission of the British Government, were removed from the original file and forwarded to the Foreign Office in 1953. In these instances the former numbering sequence presents gaps, and these letters are replaced by folios indicating page numbers, sender, receiver, date and subject of the letter removed. These letters are now in FO 371/7723 and FO 371/104408.

Extent and format
1 file (151 folios)
Arrangement

The documents in the file are mostly arranged in chronological order.

Physical characteristics

The main foliation is in pencil in encircled numbers in top right corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. of each folio. The numbering starts on the front cover with 1 and carries on until 153, which is the last number given on the back cover of the file. A former sequence runs from the first to the last folio of writing, pencil numbers (not circled) in top right recto The front of a sheet of paper or leaf, often abbreviated to 'r'. of each folio, not crossed through - the numbering runs 1-260 missing numerous numbers out. The reason is that some letters were removed from the original file to be forwarded to the Foreign Office in 1953, whereas the former numbering sequence presents gaps.

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English in Latin script
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'File 82/1 [I] (F 52) A.P.O.C. and Oil Concessions Arab Coast' [‎61r] (121/307), British Library: India Office Records and Private Papers, IOR/R/15/1/618, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100023547231.0x00007a> [accessed 28 March 2024]

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