'File 39/7 (10/9) Kuwait Oil Concession' [‎6v] (12/88)

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Article 3.—In consideration of the rights granted by the Shaikh to the Company
by this Agreement and of the assistance and protection which the Shaikh hereby
undertakes to afford by all means in his power to the Company and its operations
employees and property the Company shall pay to the Shaikh the following
sums:— .
(a) Within thirty (30) days after signature of this Agreement Rupees Indian silver coin also widely used in the Persian Gulf. Four
hundred and seventy five thousand.(Rs. 475,000).
(b) On each anniversary of the date of signature until the Company declares that
petroleum has been found in commercial quantities : EITHER Royalty of
Rupees Indian silver coin also widely used in the Persian Gulf. Three (Rs. 3) for every Fnglish ton (2,240 lbs.) of Kuwait
petroleum won and saved by the Company in Kuwait during the year
ending three months prior to the anniversary of the date of signature
OR Rupees Indian silver coin also widely used in the Persian Gulf. Ninety five thousand (Rs. 95,000) whichever shall be the
greater sum.
(c) On each anniversary of the date of signature after the Company has declared
that petroleum has been found in commercial quantities : Either Royalty
as defined above, or Rupees Indian silver coin also widely used in the Persian Gulf. Two hundred and fifty thousand (Rs. 250,000)
whichever shall be the greater sum.
(d) For the purpose of this Agreement and to define the exact product to which
the Royalty stated above refers, it is agreed that the Royalty is payable on
each English ton of 2,240 lbs. of nett crude petroleum won and saved
by the Company from within the State of Kuwait—that is after deducting
water sand and other foreign substances and the oil required for the
customary operations of the Company’s installations in the Shaikh’s
territories—.
Article 4.—On each anniversary of the date of signature of this Agreement the
Company shall deliver to the Shaikh a return of petroleum if any on which royalty
is payable for the year ended three (3) months prior to such anniversary and a
statement of the amount of royalty if any due to the Shaikh for such year, and a
report of its operations under this Agreement during such year. The Shaikh or his
Representative shall have the right to check such returns and statements which, as
well as any reports, shall be treated as confidential by the Shaikh with the exception
of such figures therein as he may be required by law to publish.
Article 5.—(A) For the purposes of its operations hereunder the Company shall
have the right without hindrance to construct and to operate power stations,
refineries, pipelines and storage tanks, facilities for water supply including boring
for water, telegraph, telephone and wireless installations, roads, railways, tramways,
buildings, ports, harbours, harbour works, wharves and jetties, oil and coaling-
stations, with such lighting as may be requisite and any other facilities or works
which the Company may consider necessary and for such purposes to use free of
all payments to the Shaikh any stone, sand, gravel, gypsum, clay or water which
may be available and may be required for its operations hereunder, provided
always that the inhabitants of the State of Kuwait are not prevented from taking
their usual requirements of these materials and that the water supply of the local
inhabitants and nomad population who may be dependent on the same is not
endangered. The Company at its discretion but in consultation with the Shaikh
may select the position of any such works. The Company may likewise utilise
without hindrance all such means of transportation by land, air and water
communication or operation as may be necessary for the effective conduct of its
operations hereunder.
But nothing in this Article (5a) shall confer on the Company the right to
dispose of stone, sand, gravel, gypsum, clay or water by sale, export or otherwise
to any other company or person within or without the State of Kuwait.
(B) The Company shall under normal conditions accept and transmit free of
charge on its wireless and telegraph installations such of the Shaikh’s messages
as will not interfere with the Company’s business, and in times of national
emergency the Shaikh shall have the full use free of charge of the Company’s
wireless and telegraph installation and railways for governmental purposes.
(C) The Shaikh’s ships shall have the right to use harbours utilised or
constructed by the Company provided that such use in no way hampers the