File 10/5 II Hasa oil: CASOC's activities in Hasa; development of Ras Tannura; Political Agent's visit to Hasa [‎176] (353/656)

And the Saudi Arab Concession shall be and is hereby modified to iuclude A
the lands, islands, waters, territories and interests of the Government described
and referred to in the foregoing provisions of this article, and henceforth the
Saudi Arab Concession as modified by the Second Principal Agreement and bv
this agreement shall be read accordingly. And, for convenience, all such lands
islands, waters, territories and interests may be referred to as the '' exclusive
area."
A rticle 6.
The following special provisions shall be applicable and shall have force and
effect as from the effective date of this agreement in regard to the Saudi Arab-
Koweit Neutral Zone and the Saudi Arab—Iraq Neutral Zone :—
(a)Computation of royalty accruing to the Government on oil and natural
gas obtained from the Saudi Arab-Koweit Neutral Zone and from the
Saudi Arab-Iraq Neutral Zone shall be governed by the royalty pro
visions of the Saudi Arab Concession; it being understood, however
that the royalty as provided therein shall be payable to the Government
only on that proportion of the total oil and natural gas so obtained as
is represented by the Government's interest in the said Neutral Zones
respectively.
(b) The Company shall be entitled to enter into such agreement or agreements
as it deems necessary or desirable to enable the Company alone or with
another or others or through the medium of another company or other
companies formed by it (either alone or in conjunction with others),
to prospect for and develop and remove the petroleum and other hydro
carbon substances of and from the Saudi Arab-Koweit Neutral Zone
and the Saudi Arab-Iraq Neutral Zone or either one of such zones;
provided, however, that there shall be no violation of the provisions of
article 32 of the Saudi Arab Concession. So far as the Company or
any company or companies formed by it is concerned, any such agree
ment may contain the right of transport for all purposes of the enter
prise by all manner of means of carriage over and along all ways
within the Saudi Arab-Koweit Neutral Zone and the Saudi Arab-Iraq
Neutral Zone or either one of them and to and from any point or points
within the said zones from and to any point or points within Saudi
Arabia. And the right in respect of the Saudi Arab—Koweit Neutral
j 6 1° 1186 an ^ P or ^ s an< ^ waterways free of all fees, dues, assessments
and charges of any nature or kind whatsoever, in accordance with
article 21 of the Saudi Arab Concession.
(c)The Company may promote a company or companies of a nationality
acceptable to the Government to explore and prospect for and exploit,
remove and export petroleum and other hydrocarbon substances in and
irom both or m and from each or in and from either of the said two
neutral zones.
A rticle 7.
rpnliflppH }" 0 rn art ^ e ^ t ^ e ^ au( ^i Arab Concession shall henceforth be
replaced by the following provision, namely :
Danv^sbatl ^ rom effective date of this agreement, the Com-
of the exclusive area COTered bvThe^Md^^b P G<:,Ternmen * ^
arprppmAnt TTr,™ fi^ • „ ^aucii Arab Concession, as modified by this
thereafter," the Companyshall reHnqmsh totfTr Peri0d ' and ^ ^
exclusive nrpn n* i-hv to Government such portions of the
wise in connexion with thp ^ ma ^- 1 ^ 1 not t,Q ex plore further, or to use other-
upon be released from thp tp er P ris ^' k® portions so relinquished shall there-
and conditions of the Saudi Arab Concession,
withstanding such relinquishment^)!!t mnr? Ver ' • that , the Company shall, not-
Saudi Arab Concession to use the f to en ]oy tlhe right reserved by the
communication facilities the ConfLm ^ f relinquished for transportation and
any other use to which the Governmpnt mT F m S as little as practicable with
put. Government may desire the relinquished portions to be