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‘File 86/2 XV (C 86) Bahrain Oil’ [‎31r] (63/317)

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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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10
9. Negotiations in respect of the area belonging to the Sheikh of Bahrein,,
but not allotted to the Bahrein Petroleum Company in their lease, have been
carried on between the sheikh on the one hand and both Petroleum Concessions
(Limited) and the Bahrein Petroleum Company, on the other, but so far without
definite result.
^ 10. The Bahrein Petroleum Company was incorporated in Canada in 1929,
the whole of the share capital being subscribed by the Standard Oil Company of
2375 California. In 1936 an agreement was reached between the Standard Oil
Company and the Texas Corporation, whereby the latter company obtained a half
^ - interest in the Bahrein Petroleum Company/ As the Texas Oil Corporation has
markets in various Eastern countries, this arrangement secures an outlet for the
refined products obtained from the refinery recently erected in Bahrein.
Qatar.
11. The oil rights in this territory were originally granted to the Anglo-
Persian Oil Company on the 17th May, 1935. A political agreement was entered
into on the 5th June, 1935. The agreement, which runs for a term of seventy-five
years, was transferred to Petroleum Development (Qatar) (Limited) (the operating
company of Petroleum Concessions (Limited) in Qatar) on the 5th February, 1937.
Geological survey work has been carried out and arrangements have been made
to commence deep drilling operations in the autumn of 1938.
12. Considerable difficulty has arisen between His Majesty's Government
and the Saudi Arabian Government with regard to the boundaries between Qatar,
Abu Dhabi and Saudi Arabia. Ibn Saud claims a frontier which in effect overlaps
the limits of the concession held by Petroleum Development (Qatar) (Limited)
and indicated in the map attached to the concession. His Majesty's Government
do not admit Ibn Saud's claim, but have offered him a frontier which, while lying
to the south of the Qatar concession boundary, is nevertheless beyond what they
regard as the legal limit laid down in the Anglo-Turkish Convention of 1914.
The Trucial Sheikhdoms.
13. The position in the Trucial States A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. is as follows :—
14 Ajman. —Petroleum Concessions (Limited) held an option giving them
the exclusive right to explore for oil in this territory for a period of two years.
The option period expired on the 22nd January, 1938, but the company have so
far failed to induce the sheikh to grant an oil concession.
15. Abu Dhabi. —The option of Petroleum Concessions (Limited) expired
on the 3rd January, 1938. Negotiations for a concession were recently suspended
as the sheikh is proving difficult.
16. Debai. —Petroleum Concessions (Limited) hold a concession in respect
of this territory for a period of seventy-five years (Commercial Agreement dated
the 22nd May, 1937, and Political Agreement dated the 5th February, 1937). No
work has so far been carried out.
17. Ras-al-Khaimah. —The option of Petroleum Concessions (Limited)
expired on the 1st August, 1937. A political agreement, preceding the conclusion
of a commercial agreement, was signed on the 25th March, 1938. Negotiations
for the latter are in suspense.
18. Sharjah. —Petroleum Concessions (Limited) hold a concession in respect
of this area for a period of seventy-five years (Commercial Agreement dated the
17th September, 1937; Political Agreement signed the 12th November, 1937).
19. Umm-al-Quwaim. —No option or concession has yet been obtained in
respect of this territory, but the sheikh recently informed Petroleum Concessions
(Limited) that he was cc willing to negotiate."
A den Protectorate.
20. An application for an oil exploration licence in respect of this territory
has been made by Petroleum Concessions (Limited) and also jointly by the
Standard Oil Company of California and the Texas Corporation. Petroleum
Concessions (Limited) have priority, and the Protectorate authorities have been
recommended to grant that company an exclusive exploration permit for a term of
two years, after which the other companies could be given an exclusive permit in
respect of the territory not retained by Petroleum Concessions (Limited). A draft
of the exploration permit has been agreed between the Colonial Office and the
[330 1-1] B 2

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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’ [‎31r] (63/317), British Library: India Office Records and Private Papers, IOR/R/15/1/663, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100023661621.0x000041> [accessed 29 March 2024]

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