File 10/5 II Hasa oil: CASOC's activities in Hasa; development of Ras Tannura; Political Agent's visit to Hasa [‎175] (352/656)

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ir. receive, the following payments to or for the benefit of the Government in
manner hereinafter provided, namely :—
(a) The sum of £140,000 English, gold, or its equivalent, which sum shall
become due upon the effective date of this agreement.
(&) The sum of £20,000 English, gold, or its equivalent, annually as rental.
The first of such payments, being rental for the year following the
effective date ^ of this agreement, shall become due upon the first
anniversary of the effective date of this agreement, and subsequent
payments shall become due upon each succeeding anniversary of the
effective date of this agreement until the happening of any one of the
following events, namely :—
(1) Discovery of oil in commercial quantities within the additional
territories described and referred to in Part 2 and in Part 3
of the schedule to this agreement, and which additional terri
tories are hereinafter called the "'additional area." If the
Company shall fail to declare so sooner, the date of discovery
of oil in commercial quantities shall be the date of the
completion and testing of a well or wells within the additional
area capable of producing, in accordance with first-class oil
field practice, at least 2,000 tons of oil per day for a period
of thirty consecutive days.
(2) The relinquishment by the Company of the whole of the additional
area.
If either of the events mentioned in (1) and (2) above shall occur during
the period intervening between any two anniversaries of the effective
date of the agreement, the rental payable for the year in which
such event occurs shall be only that proportion of the annual rental
above mentioned as the number of days that have intervened between
the preceding anniversary date and the date of the occurrence of the
event mentioned above bears to a full year of 365 days.
(c) The sum of £100,000 English, gold, or its equivalent, upon discovery of
oil in commercial quantities within the additional areas aforesaid.
Each of the foregoing payments shall be made within thirty days from the
date upon which it becomes due and shall be made in accordance with and in the
manner provided in articles 17 and 18 of the Saudi Arab Concession.
The foregoing payments are to be made by the Company in addition to any
other payments by way of royalty or advance or otherwise already provided for
by the Saudi Arab Concession and yet unpaid, and without prejudice to the
right of the Company to recover advances already made under articles 4, 6
and 11 and yet to be made under article 11 of the Saudi Arab Concession, and
to recover overpaid rental under article 12 of the Saudi Arab Concession.
A rticle 5.
From the effective date of this agreement, the terms and provisions of the
Saudi Arab Concession, as herein amended, shall include and extend to :
(а) All lands islands, waters, territories and interests included in article 2
of the Saudi Arab Concession, the description of which is repeated
from the Saudi Arab Concession, Part 1 of the schedule to this agree-
men t and
(б) All lands, territories and interests described and referred to in Part 2 of
the schedule to this agreement, and
(c) All right title and interest of the Government now or hereafter, m or to
the two territories described in Part 3 of the schedule to this agreement
and known respectively as the " Saudi Arab-Koweit Neutral Zone "
and the "Saudi Arab -Iraq Meutral Zone," and all rights and interests
of a maritime or of a territorial nature now or hereafter appertaining
to such two zones or either one of them.
[680 k—2] B 2