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‘File 86/2 XV (C 86) Bahrain Oil’ [‎30v] (62/317)

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The record is made up of 1 volume (156 folios). It was created in 18 May 1937-15 Apr 1942. 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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i;. I
Concessions (Limited) does not include an Iraqi Government Director. Lord
Cadman is chairman of both companies. I he shareholding of the Iraq Petroleum
Company is divided as follows :—-
Percentage.
British—
Anglo-Iranian Oil Company
Dutch—
Royal Dutch Shell ...
French—
Compagnie Francaise des Petroles
American—
Near East Development Company {i .e., Standard
Oil of New Jersey and Socony-Vacuum in
the proportion of 50-50)
Participation and Investments (Limited)—
C. S. Gulbenkian ...
23-75
23-75
23-75
23-75
5-00
100-00
Koweit.
4. The concession for this territory is held by the Koweit Oil Company
(Commercial Agreement, dated the 23rd December, 1934; Political Agreement,( 2 )
dated the 5th March, 1934), the capital of which is held jointly by the Anglo-
Iranian Oil Company and the Gulf Oil Corporation of America (Mellon Group),
5. One well was put down on the north side of Koweit Bay, but only small
quantities of oil were found. Another well has been drilled at Bur^an, south of
Koweit Bay, and was successful in striking oil.
Koweit Neutral Zone.
6. Ihe boundaries between Koweit and Nejd were settled at the Uquair
erei ^ ce 0 November 1922 when certain territory was recognised as common
o ese wo S ates. Under this settlement the Rulers of Koweit and Neid were
f T'f A S 111 o ZOne suc ? 1 time as a fresh agreement should be
in thp ynriA ff m Conse( lu e ntly, neither Ruler can grant an oil concession
m the zone without the consent of the other.
reg J lrd 1 i t0 , oi l ^gotiations in the Neutral Zone have, in
beea^ th^^flA^f ^ ^ f , Petrole " m Concessions (Limited) cannot move
an ontion in rpstwt f'!/' 6 ' i "whom application has been made, refuses to grant
that he is entitlpH tr> -ill 'fl s e rights in the zone, since he considers
Ihn Sand dies p,,. r 'i e nghts in the zone and hopes to obtain them when
by the Sheikh of KWoit ?" cf ' S! jl on 5 (Limited), however, have been informed
any other rommniP^nri thi nth 6 T"' ^ t C S an g es his mind ' info ™ ^m before
fs CThoug^tTo favour exploitation of th" 4 ^ Arabia ' wh0
committed to the Standard Oil Comnanv of rS 7 f. company, is
agreement with that comDanv nndpr by reason of a s P eciaI
in respect of Ibn Sand's rights in thT ™ 7 y e( :t lved a P ref erential position
received in regard to thp nnnTinff i zone much the same as that which they
regard to the unallotted areas in Nejd (see paragraphs 2^28 below).
Bahrein.
Petroieum Company'rUmited) uriilpr -i' 1 ] 18 hemg ""dertaken by the Bahrein
of Bahrein on the 29th December 10^4 ' S r ' ,llte,, to the company by the Sheikh
lease covers practically the wh^'nf fh' r",' 1 m J od i fl ® d on the 3rd ^ 1936. The
of fifty-five years from the 1st January 6 lOS^ TT ® a ^ em ' ® nd runs for a P erio '|
been drilled or were about to bp Hriii ^ qq ' ^ end 0: ^ 1^37 58 wells had
Production durinri937 amonn^H i ' 33 Were P roducin g. and 14 were shut-in.
g amounted to approximately 1,108.894 tons.
( ) .By 1 Political Agreement " ia mfmf in
n interests and to be guided by the advice of ffisVa^'s G^nmtt~a^

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Content

The volume contains letters, telegrams and memoranda relating to oil production in Bahrain, being undertaken by the Bahrain Petroleum Company (hereafter BAPCO). The volume is a direct continuation of ‘File 86/2 XIV (C 67) Bahrain Oil’ (IOR/R/15/1/662). The principal correspondents in the volume are 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 The historical term used to describe the body of water between the Arabian Peninsula and Iran. (Lieutenant-Colonel Trenchard Fowle until August 1939, Lieutenant-Colonel Charles Geoffrey Prior thereafter), 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. in Bahrain, (Captain Tom Hickinbotham until October 1937, Hugh Weightman from October 1937 to October 1940, and Major Reginald Alban thereafter), and various local representatives of BAPCO.

The subjects covered by the volume are:

  • Preferences (or preferred markets) for Bahrain oil, with Australia and New Zealand proposed, and British opposition to the principle of preferences, on the grounds that oil production in Britain’s empire is too small (folios 4-11);
  • Changes to the appointment of BAPCO’s Chief Local Representative, with numerous incumbents of the post: John Black, C. Deacon, Dr Kennedy and Milton Lipp.

Most of the volume’s correspondence refers to the impact of the Second World War upon Bahrain and BAPCO activities:

  • Discussion amongst British officials over the possible pre-emption of Bahrain oil (folios 38, 52-53), and BAPCO’s willingness to cooperate with the British Government (folio 49);
  • Discussion of the strategic importance of Bahrain’s oil, the release of BAPCO employees for military service, and defence of BAPCO facilities (folios 57-59);
  • An enquiry from the Air Ministry regarding Bahrain’s ability to produce aviation fuel and at what rate, with a detailed technical response from BAPCO staff (folios 75, 77-78);
  • The Political Agent’s preference for Milford Lipp as Chief Local Representative, because communications have been ‘expeditiously disposed of’ under Lipp’s authority (folios 81-91, 106-08); Lipp’s status as a U.S. citizen, leading to an agreement signed by Shaikh Ḥamad bin ‘Īsá Āl Khalīfah and BAPCO, permitting the appointment of a non-British citizen as Chief Local Representative for the duration of the war (folios 93, 113);
  • Lipp’s suggestion that the Company’s geological plans and records be moved to a secure location (New York), to prevent them falling into enemy hands, a proposal agreed to by all parties concerned (folios 96-103);
  • A drop in oil production in Bahrain in 1941 (folios 109, 116-16A), as a result of reduced demand due to petrol rationing to supply areas such as India, and a shortage of available tankers (folios 119-20); explanation of the drop in royalties to Shaikh Hamad; a subsequent increase in production at the end of 1941 (folios 124-30).

The volume also includes a press cutting from the Iraq Times , dated 9 November 1937, which remarks on the superior quality of Bahrain’s oil (folio 12), and a copy of BAPCO’s accounts for the first half of 1938 (folios 36-37).

Extent and format
1 volume (156 folios)
Arrangement

The volume’s contents are arranged in approximate chronological order, from the earliest item at the front to the latest at the end. The office notes at the end of the volume (ff 137-50) mirror the chronological arrangement. There is a subject index at the front of the volume (f 3) which refers to the volume’s uncircled pencil foliation.

Many items of correspondence in the volume have pencil annotations. These annotations will refer to other items of correspondence in the same volume (indicated by a page or folio number), in other parts of the File 86/2 Bahrain Oil subject (usually indicated by the confidential file number), or other subject files of the Bushire Residency An office of the East India Company and, later, of the British Raj, established in the provinces and regions considered part of, or under the influence of, British India. (indicated by A Series file number).

Physical characteristics

Foliation: The main foliation sequence begins on the first folio and ends on the last folio, using circled pencil numbers found at the top and centre of each recto The front of a sheet of paper or leaf, often abbreviated to 'r'. . A second sequence paginates every page of text between ff 4-203 with some gaps, and a third sequence paginates the office notes at the back of the volume; these numbers are also written in pencil, but are not circled, they can be found in the top left or top right corners of the verso The back of a sheet of paper or leaf, often abbreviated to 'v'. and recto The front of a sheet of paper or leaf, often abbreviated to 'r'. side of each folio respectively. Numbers written throughout the volume in red and blue pencil are part of the volume’s original filing system, and correspond to the office notes index at the end of the volume (ff 137-50).

Written in
English in Latin script
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‘File 86/2 XV (C 86) Bahrain Oil’ [‎30v] (62/317), British Library: India Office Records and Private Papers, IOR/R/15/1/663, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100023661621.0x000040> [accessed 25 April 2024]

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