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'CONFIDENTIAL 86/9-I OIL REFINERY BAHRAIN PETROLEUM COMPANY. C-64' [‎7v] (19/448)

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The record is made up of 1 volume (220 folios). It was created in 12 Aug 1935-20 Jun 1936. It was written in English and Arabic. 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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V
3 .
of net crude oil, and so long as the concession is
worked on a substantial scale, the revenues from oil
should be satisfactory. But there is nothing which
requires the Company to maintain a production at any
particular level and if imported oil of better quod-ity
could be secured for treatment in the refinery, and
Bahrein oil were to be used mainly as fuel, the Sheikh 1 s
position would be seriously prejudiced by the concession
which is sought. The oil concession was originally
obtained very cheaply, and the minimum annual royalty no./
payable is only Bs.75,000 per annum in Bahrein, as
compared with Bs.95,000 to Bs.250,000 per annum in
Koweit, and from Bs.150,000 to Bs.300,000 per annum in
Q,atar. In both of the above Agreements, payments have been
agreed to as a consideration for freedom from import
duties and taxation. Iraq and Persia may also be referred
to as examples in this connection. ft*
I
The revised Article III. suggested by
Ballantyne is I suggest much too wide and it would oe
better to follow the Koweit and Q,atar provisions.
I think also that it would be preferable now to
amend Article YII of the Lea.se, instead of allowing it
to wait over, by adopting Ballantyne 1 s suggestion of
adding after the word 11 territories 11 sub-article (a) the
words 11 other than the oil used in connection with the
refining of imported oils 11 . Oil used as fuel for this
purpose should certainly bear a royalty payment. One
leave the settlement of the formula to be used for
ascertaining/
f-
L I u Z

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Content

The volume contains correspondence between the 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. (Maurice Clauson), the Bahrain Petroleum Company (Hamilton R Ballantyne), 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. (Trenchard Craven Fowle, Percy Gordon Loch) , 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. at Bahrain (Percy Gordon Loch), and the Government of Bahrain (Shaikh Ḥamad bin ‘Īsá Āl Khalīfah, Charles Dalyrmple Belgrave) regarding the Bahrain Petroleum Company (BAPCO)’s wish to erect an oil refinery in Bahrain.

The primary subject of discussion in the volume is the Bahrain Petroleum Company’s interest in erecting a refinery in Bahrain; the possible markets for oil produced by it; the Admiralty’s interest in the potential value of access to petrol during wartime conditions; and the possibility of using a refinery in Bahrain to refine imported oil. Also discussed is the Company’s interest in securing further tax exemptions from the Bahrain Government in relation to establishing a refinery; an agreement to increase the minimum amount of royalty paid by BAPCO to the Bahrain Government; and the desire of the Shaikh of Bahrain to ensure that every effort would be made to employ Bahraini subjects at the refinery once complete.

Other matters discussed in the volume include:

  • BAPCO’s intention of loaning American refinery construction workers from the Standard Oil Company of California to work on construction of the refinery at Bahrain, and arrangements with the British Consul-General in San Francisco (Cyril H Cane) for the issuing of visas to the relevant individuals;
  • the drafting of a deed which would modify the mining lease between BAPCO and the Government of Bahrain in order to enable the erection of a refinery in Bahrain, and the procedures required for its signature in Bahrain. A copy of the original mining lease can be found at folios 6-16, and a copy of the deed modifying the lease can be found at folios 167-170.
  • BAPCO’s intention of attempting to acquire some of the plant for the refinery from Germany and the need for the plant to be accompanied by 2 Germans to assist in its erection and to oversee the training of BAPCO staff in its use.

A series of file notes which were maintained as a record of the correspondence in the volume can be found at folios 213-217.

Extent and format
1 volume (220 folios)
Arrangement

The volume contains a table of contents on folio 2 comprising of subject headings and page references. The papers are arranged in approximate chronological order from the front to the rear of the file. File notes for the volume can be found at folios 213-217, the notes cover the correspondence contained within the volume as well as references to correspondence covering the period 15-20 June 1936 which is recorded as having been transferred to file 86/2 [IOR/R/15/1/662].

Physical characteristics

Foliation: The main foliation sequence (used for referencing) commences at the front cover, and terminates at the inside back cover; these numbers are written in pencil, are circled, and are located in the top right corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. side of each folio. An additional mixed foliation/pagination sequence is also present in parallel between ff 6-217; these numbers are also written in pencil, but are not circled. The parallel sequence is located in the same position as the main sequence, although some folios are also numbered on the verso The back of a sheet of paper or leaf, often abbreviated to 'v'. .

Written in
English and Arabic in Latin and Arabic script
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'CONFIDENTIAL 86/9-I OIL REFINERY BAHRAIN PETROLEUM COMPANY. C-64' [‎7v] (19/448), British Library: India Office Records and Private Papers, IOR/R/15/1/681, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100024507244.0x00004f> [accessed 24 April 2024]

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