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

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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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"by the Sheikh. Mr*Ballantyne’s second proposition,
viz: that the Company should he assured freedom at all
times hereafter from all forms of imposition relative
to their operations in Bahrain except royalties agreed
upon, was, however, a very much more difficult
proposition. It seemed quite reasonable, as had been
stated before, that the Company, if they were going
substantially to increase their commitments in
Bahrain, should know precisely where they stood in
regard to their future financial commitments to the
Sheikh. But it was equally reasonable that they
should pay for a concession of this kind, as had been
done in similar cases elsewhere, and there appeared to
be two obvious ways in which this could be done,
either by an increase in the rate of royalty or by an
annual lump sum payment in addition to the royalty*
I also put forward as a personal opinion that there
might be a third alternative which might possibly
and
suit the Sheikh’s interests/would obzlously be open to
very little objection from the Company’s point of view, 1 "
namely, that the amount of the minimum royalty to be
paid in one year under Article 8 should be increased to,
say, the figure that is at present actually being paid.
The real advantage of such a solution would seem to be
as follows. The main benefit which the Sheikh may
expect to gain from the setting up of a refinery is an
increase in the production of Bahrain crude oil. If
all goes as planned this ought materially increase his
income» On the other hand, after the refinery is
set up, the Company might either cease to operate it,
or they might find it more convenient to use other oil.

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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' [‎front-i] (7/448), British Library: India Office Records and Private Papers, IOR/R/15/1/681, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100024507244.0x00005b> [accessed 25 April 2024]

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