File 10/5 II Hasa oil: CASOC's activities in Hasa; development of Ras Tannura; Political Agent's visit to Hasa [‎23r] (58/656)

facilities etc® and the installation and operation of the
machinery, equipment and facilities for drilling wells.
Article 9 «>
Upon the discovery of oil in commercial quantities, the
Company shall advance to the Government the sum of fifty thouaan
pounds gold, or its equivalent, and one year later the further
sum of fifty thousand pounds gold, or its equivalent# The due
date of the first advance shall be the date of discovery of oil
in commercial quantities, as provided in Article 8 hereof, and
the aue date of the second advance shall be one year later. In
each case the Company shall have sixty days following the due
date within wh&ch to make the advance. Both of these advances
are in a count of royalties which may be due to the Goverm® nt
and consequently the Company shall have the right to recover the
amount of these advances by way of deductions from one half of
tae royalties due the Government.
Article 10#
Since it has been agreed that the annual rental of five
thousand pounds gold, or its equivalent is payable to thedate
of "til© dlscoyery of oil in coTorsicircisLl cjtioji'fci'tios^ and sine©
has been agreed also that the annual rental is to be payable in
advance, it may ha pen that the last annual rental paid prior
to the date of discovery of oil in commercial qiiantities will
cover a period should be equal to or greater than one*f ifth of a
vear. the proportionate amount of the five thousand pounds gola*
or its equivalent corresponding to such period^shall be treated
as an advance on account of royalties due tht Government, and
consequently it should be recoverable bythe Com PJ n y
of deductionsfrom one-half of the royalties aue the Government.
Article 11 . . ..
As soon as practicable (i.e.allowing a reasonabletii^f
ordering and shipping further materials and ^rv
Arabia and commencing further work|after the ^;te erf awi? J
■fuagl- ©f oil In conacrcial quantities, the^Company _
continue operations connected w1 ^^J 1 Bball contime diligently
two strings of tools. These operations shall con1:,:l ^ ue J.J
nnJtlthe^roven area has been drilled up in ac ordance with fir
-st claseoll fleld practive. or until the contract U terminated
Article 12 »
The Conpany shall pay the government a1 ?:
crude oil produced and saved and run fr m fiild storag ,
first deducting:* . A Q »
1) Water and f oreign substance, . . f
2) Oil required for the cu f t0I!ia jy ^Sndi l^abia
the Company's installation within Sauai Arabia
3) The oil required for the manufacturing the
amounts of fasoline and ker«8«n® to •
vided free each year to the Government m
accordance with Article 17 acre®i# «han
The rate of royalty per ton of such net cur e
be four shillings gold, or its equivalent#
ftrtilce 13 #
If the Company should produce, save and sell any nat ural