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'86/12-III CONFIDENTIAL A. 85 P.C.L. MUSCAT' [‎134r] (272/564)

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The record is made up of 1 volume (278 folios). It was created in 20 Oct 1937-31 Dec 1944. 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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St am]
THIS
AGREEMENT dated the Twenty sevei
of September One thousand
B E T W E E N HIS MAJESTY* S
GOVERNMENT IN THE UNITED KINGDOM (hereinafter called M Kis Majesty’s
Government”) of the one part and PETROLEUM DEVELOPMENT (OMAN AND
DHOFAR) LIMITED (hereinafter called "the Company” which expression
shall where the context so admits be deemed to include its successors
and/or assignees and shall also be deemed to include any subsidiary
Company) of the other part.
WHEREAS Petroleum Concessions Limited has obtained
concessions dated the Twenty fourth June, One thousand nine hundred
and thirty seven, from His Highness the Sultan of Muscat and Oman
(hereinafter called ”the Sultan”) (A) in respect of the Sultanate of
Muscat and Oman excluding Dhofar and Gwadur (B) in respect of the
District called Dhofar, AND WHEREAS the said Concessions have been
assigned by the said Petroleum Concessions Limited to the Company,
the Company has agreed with His Majesty’s Government as follows:-
IN the event of a state of national emergency or war (of the
existence of either of which His Majesty’s Government^shall be the
sole judge) His Majesty’s Government shall have t he right of pr e-
\ emption of all the oil produced in the Sultanate of Muscat and Oman
| ©Secluding Gwadur in accordance with the following terms, namely
(1) His Majesty’s Government shall have the right of pre-emption
of all crude oil gotten under the Concessions granted by the Sultan to
the Company and of all the products thereof and shall have the right
to require the Company to the extent of any refining capacity it may
have in the Sultanate of Muscat and Oman to produce oil-fuel that
shall comply with the Admiralty specifications at the time provided
that Muscat oil be of a suitable kind and quality for this purpose.
(2) The Company shall use its utmost endeavours to increase so^
far as reasonably possible with existing facilities the supply of oil
and/or products thereof for the Government to the extent required by
the Government.
( 3 ) The Company shall with every reasonable expedition and so as
to avoid demurrage on the vessel or vessels engaged to convey the
same, do its utmost to deliver all oil or products ex oil purenased
by the Government under their said right of pre-emption in the quanti
ties at the time and in the manner required by the Government at a
convenient place of shipment or at a place of storage in the Sultanate
of Muscat and Oman to be determined by His Majesty's Government. In
the event of a vessel employed to carry any such oil or products
thereof on behalf of His Majesty being detained on demurrage at the
port of loading the Company shall pay the amount due for demurrage
according to the terms of the charter party and/or the rates of loading
previously agreed v/ith the Company unless the delay is due to causes
beyond the control of the Company. Any dispute which may arise as to
whether the delay is due to causes beyond the control of the ompany
shall be settled by agreement between His Majesty's Government and the
Company, and, in default of such agreement, the question shall be
referred to two arbitrators, one to be chosen by His Majesty’s
Government (or 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. ) and the other by the Company,
with power to appoint an umpire in case of disagreement, such arbitra
tion to be held in England and to be deemed a reference to Arbitration
under the provisions of the Arbitration Acts 1889 to 1934 (52 and 53
Viet, c.49; 24 and 25 Geo. V. c.14) of the Parliament of the United
Kingdom, or any statutory modification or re-enactment thereof for the
time being in force.
( 4 ) The price to be paid for all oil or products of the refining
or treatment of oil taken in pre-emption by His Majesty's Government
UI OXfW. l/iUOlIU WO. VJ-J. *** xr ^ V “ .V
shall be either (a) as specified in a separate agreement or ^bj 11 no
(1)
PZ.3179/38.

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Content

The volume comprises correspondence between 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. , 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 Muscat, 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, 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. (Roland Tennyson Peel, John Percival Gibson, Francis Anthony Kitchener Harrison) , the Secretary to the Government of India (Sir Aubrey Metcalfe), the Sultan of Muscat and Oman (Sayyid Sa‘īd bin Taymūr Āl Bū Sa‘īd) and Petroleum Development (Oman and Dhofar) Limited (Ernest Vincent Packer, John Skliros, H H Wheatley) regarding the oil concession agreements concluded with the Sultan of Muscat for Dhofar [Zufār] and Muscat territory. Copies of the two concessions can be found at folios 17-47.

Included in the volume is correspondence relating to the political agreement between His Majesty’s Government and Petroleum Development (Oman and Dhofar) Limited including its presentation to the Sultan of Muscat; the Sultan’s concerns about the document and negotiation with 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. in order to agree a suitably amended version that satisfied all parties, including the decision by 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. to have a separate pre-emption agreement. Copies of the Political Agreement and Pre-Emption Clause agreement can be found at folios 93-98 and 132-135.

Also discussed is the decision by Petroleum Development (Oman and Dhofar) Limited to take up in 1942 the option of an extension on their exploration agreement for two years owing to wartime conditions and further discussion regarding possible methods of extending the exploration agreement to the end of the war and a period beyond. The conclusion of the discussion being the decision by the Company to take up their concession rather than attempt to negotiate any further extension. Also discussed are concerns by the Sultan of Muscat that the Company did not really intend to explore and develop a concession in his territory and were only really interested in preventing other companies operating there. The concession with the Shaikh of Ajman [‘Ajmān] (Rāshid Bin Ḥumaid Al-Nu`aimī) is also discussed in this context as the exploration of that territory had also not commenced on the outbreak of World War II and extensions to the exploration agreement were therefore also required.

Further correspondence relates to the Oil Undertaking made in 1923 by Sultan Taimur bin Faisal [Sayyid Taymūr bin Fayṣal bin Turkī Āl Bū Sa‘īd], formerly Sultan of Muscat and father of Sayyid Said bin Taimur. The correspondence centres around the assertion made by Sultan Said bin Taimur that the undertaking was not binding on him as his father had written a letter to the political authorities in 1923 stating that any such undertaking would not be binding on his successors unless specifically stated in the contractual agreement. Further correspondence concludes that the letter written by Sayyid Taimur bin Faisal in 1923 was received by 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. but was never responded to by him or forwarded on to 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. or Government of India and that they were therefore unaware of any such opinion or response and that as a result were prepared to consider a re-negotiation of the Sultan’s treaties and undertakings.

Also of interest within the volume are:

  • discussions about the Muscat Arms Subsidy which was originally granted to Sayyid Faisal bin Turki [Fayṣal bin Turkī Āl Bū Sa‘īd] including the conditions under which it was granted and the lack of clarity in the terms and conditions of the subsidy’s contract;
  • discussions regarding the Oman hinterland which the Company were interested in exploring but which was under the authority of the Imam of Muscat and the decision to wait until the following year to raise the question again as the Imam’s authority in that area was considered to be dwindling and the Sultan hoped then to be able to make arrangements with either the Imam of the tribes living there;
  • a memorandum prepared in the Petroleum Department, June 1938, looking at areas where petroleum concessions were mostly likely to be, or had been already been obtained, on the Arabian Peninsula (Koweit [Kuwait], Koweit Neutral Zone, Bahrein [Bahrain], Qatar, Trucial Sheikhdom’s, Aden Protectorate, Saudi Arabia, The Yemen, Muscat, and Oman) and looking at Petroleum Concessions Limited's refinery agreement and pre-emption clause.

The agreements and correspondence with the Sultan of Muscat are in Arabic and English.A series of file notes which were maintained as a record of the correspondence in the volume can be found at folios 264-276.

Extent and format
1 volume (278 folios)
Arrangement

The volume contains a table of contents on folio 3 comprising of subject headings and page references. The papers are arranged in approximate chronological order from the front to the rear of the file.

Physical characteristics

Foliation: the main foliation sequence (used for referencing) commences at the front cover with folio 1 and terminates at the back cover with folio 280; 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 between ff 2-267; these numbers are also written in pencil, but are not circled. These are located in the same position as the main sequence, except for some instances which are located on the verso The back of a sheet of paper or leaf, often abbreviated to 'v'. . Pagination: a short pagination sequence is present at the back of the volume between ff 264-276; these numbers are written in pencil, and are located in the top outermost corners of each page.

Written in
English and Arabic in Latin and Arabic script
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'86/12-III CONFIDENTIAL A. 85 P.C.L. MUSCAT' [‎134r] (272/564), British Library: India Office Records and Private Papers, IOR/R/15/1/684, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100024507296.0x000049> [accessed 12 May 2024]

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