'File 8/15 Arab Series - 1933-1939' [‎25r] (49/434)

(5) The Gulf Oil Corporation is a wholly American concern, working in
the Near East through its subsidiary, the Eastern Gulf Oil Company. The Gull
Oil Corporation is a powerful company engaged in producing, transporting,
relining and marketing oil throughout the United States, east of the Rocky
Mountains. It is also engaged in producing oil in Mexico, Venezuela and
Colombia, and markets oil extensively in Europe. The principal interest in it
is that of the Mellon family, who are said to have come in originally as finan
ciers and to have ended up with an 80 per cent, interest. The Gulf is an
independent company, but it is interested with the Socony—Vacuum Company
(a recent merger of the Standard Oil Company of New York and Vacuum Oil
Company), and S. O., New Jersey, in the I. P. C. It is also interested with
the Eastern and General Syndicate in a possible concession in Koweit. In
1927 it obtained on option from the Eastern and General on the Bahrein Con
cession, which the syndicate had secured in December 1925. Eventually, how
ever, this concession was taken over by the Standard Oil of California, presum
ably because the Gulf, as a member of the I. P. C., could not hold it. In 1929
it acquired from the Eastern and General Syndicate an option over any rights
which the syndicate might possess in Hasa, the neutral zone and Koweit. It
could only operate concessions in Hasa and probably also in the neutral zone
with the permission of the I. P. C.
(6) Standard Oil Company of California. —After the break-up of the
Standard Oil Group in 1912, many members of the group became independent,
including the above company. This company is one of the largest oil companies
in the United States, and is a complete unit, being engaged in producing, re
fining, transporting and marketing crude oil and refined products. The
company is engaged in production in eight States in the United States, and
has oil properties in Colombia, Mexico and Venezuela. The Standard Oil
Company of California and the Gulf are independent of each other, although
there is a general impression that the various Standard Oil Companies still
have some community of interest and are prepared to co-operate in matters
of general policy. At times, however, there has been keen competition
between them. As pointed out above, the Standard Oil Company of California
holds the Bahrein Concession, which it operates through the Bahrein Petro
leum Company, a Canadian Corporation. It has also just secured from Ibn
Saud an oil concession in Hasa, full particulars of which are not yet available.
(C)— Past Concessions affecting Saudi Arabia.
(1) Northern Hejaz. —It is possible that certain concessionary rights were
granted in Turkish times, but this subject has not been explored in the Lega
tion. There was talk of a concession under the Hashimite regime and Mr.
Philby was one of those interested, but there is no evidence of a Hashimite
concession having been granted. Any interest of Mr. Philby’s is presumably
identical with that of Midian (Limited), an inactive but still going concern,
closely allied with Sharquieh (Limited).
(2) Jedda (Hejaz, West Coast of Arabia).—Two American engineers
(Twitchell and Crane) carried out investigations for oil in 1931. The Petro
leum Department brought the matter to the notice of the Anglo-Persian Oil
Company, who replied that the geological prospects in this area were not
regarded as favourable [see under paragraph (A) (1)].
(3) Muscat. —The Anglo-Persian Oil Company obtained a concession in
1925 to prospect for oil for a period of two years with the right to a mining
lease, but this concession has now lapsed.
(4) Mokalla. —The Anglo-Saxon Petroleum Company started negotiations
for a concession in 1928-29, but the matter was not proceeded with as they
reached the conclusion that the prospects of discovering petroleum were quite
unfavourable.
(5) Hasa.—The Anglo-Persian Oil Company applied, probably for
prospecting rights only, to Ibn Sand in 1921. The E.G.S. came into the field
later At the beginning of 1923 Major Holmes submitted a draft concession
to Sir P. Cox. In March 1923, the latter, acting under instructions from home
suggested to Ibn Saud that he should decide nothing until he had had an
opportunity of considering an offer by A.P.O.C., whom His Majesty’s Govern
ment considered to have a prior claim. About the same period or earlier the
two companies were m touch with each other with a view to sharing interests,
and it is stated that at one point they went through a pretence of breaking off