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Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎24r] (49/284)

The record is made up of 1 file (140 folios). It was created in 1932-Jul 1933. It was written in English. 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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21
the approval of the Shaikh." The Political Eesident, in his despatch of
22nd July, 1931,* said that the Shaikh had approved the grant of a
licence and that he (the Political Eesident) had authorized the execution
of an Agreement granting the licence, a copy of which would be forwarded
in due course. As no copy of this Agreement appears to have been
received, the Petroleum Department are not aware of what area is covered
by the prospecting licence and would be glad if 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.
could be requested to furnish a copy without delay.
(2) The terms of the Eastern and General .Syndicate's concession of 2nd
December, 1925, are in several respects unsatisfactory, and Clause IX of
the second schedule is an example of one of the unsatisfactory features.
It is difficult at this stage to suggest a wholesale revision of the Agreement,
but it is considered that some improvement could be effected and possibly
one or two points covered, either during the revision of this Clause, or
when the lease is finally drawn up.
(3) The views expressed in the despatch of 16th May, 1932, t from the Political
Resident in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , appear to be subject to modification in the
light of his telegram of 4th June,| reporting that the Bahrein Petroleum
Company had struck oil and that the well was making over 70 tons per
day. If this rate of output is confirmed, the Company will probably shut
in the well and proceed to drill further test wells in order to prove the
extent of the oil structure, with a view to selecting an area for a mining
lease. . ' '
(4) To enable the Company to carry out further test drilling, some extension
of the period of the prospecting licence is desirable, and the Secretary for
Mines agrees that an extension of one year might be given, which could
be reviewed later when it is seen what progress the Company have been
able to make.
(5) It should be recognized that the more prospecting drilling that is carried
out, within the period allowed, the better, but from the Shaikh's point of
view, the most important consideration is how soon the Company can be
induced to declare that " oil has been discovered in commercially exploit
able quantities." If the Company produce oil during the period of their
prospecting licence, this will be to the advantage of the Shaikh in that
it will enable him to counter any suggestion from the Company that oil
has not been found in " commercially exploitable quantities."
(6) It is not unusual in prospecting licences to provide that a limited quantity of
oil may be produced free of royalty for testing and experimental purposes.
The provision contained in the latter part of Clause IX is, however, not
satisfactory. It might not be reasonable in all cases to expect a Company
to apply for a mining lease " as soon as more than 100 tons of oil are won
from one single borehole " for it is possible that this oil might only be
obtained by baling or pumping over a prolonged period. Under such con
ditions the well would be of little value except as an indication of the
occurrence of oil. Clause IX, as at present worded, states that the Com
pany shall apply for a mining lease in respect of each area in which Work
is proceeding as soon as more than 100 tons of oil are won from one single
borehole within it. In the first place, it is not clear what is meant by the
word <c area " in the above context, and secondly, this Clause, if applied
literally, would have the effect of limiting the number of boreholes under
prospecting licence to 3, since under the provisions of the Agreement the
lease of 100,000 acres must be taken out in not more than 3 blocks. It
would clearly not be to the advantage of the Shaikh to have the number
of test boreholes thus limited.
(7) The Secretary for Mines notes that the Agreement contains no provision,
either in the prospecting licence or the mining lease, to compel the Com
pany to furnish returns, for the purpose of royalty assessment, of the
amount of oil produced, and it is suggested that in agreeing to an amend
ment of Clause IX tEe Shaikh should require the inclusion of such a
provision, and that facilities should be afforded either tft the Shaikh or
his representative to check the returns. A suggested form of amendment
to cover this point is enclosed herewith. It is presumably the absence of
* No. 79 in Middle East No. 32. f No. 26. } C. 98035/32 [No. 32] : not printed.
y

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Content

This file contains copies correspondence regarding the granting of oil concessions in Bahrain and Kuwait.

The correspondence is a mixture of internal correspondence between British officials (from 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. , Colonial Office, Foreign Office and the Petroleum Department) and correspondence between British officials and Shaikh Hamad bin Isa Al Khalifa, the ruler of Bahrain and representatives from the Bahrain Petroleum Company Limited, the Eastern and General Syndicate Limited and the Anglo-Persian Oil Company.

The file is divided up as follows:

Bahrein [Bahrain]

1. Indenture between Shaikh of Bahrein and the Eastern and General Syndicate, Limited, dated 12th June, 1930. Conditions governing assignment of Concession to Bahrein Petroleum Company.

2. Eastern and General Syndicate's application for a further Concession in Bahrein.

3. Landing Grounds and Seaplane Station.

4. Areas covered by Prospecting Licence granted to Bahrein Petroleum Company on 28th November, 1931.

5. Employment of British Subjects by the Bahrein Petroleum Company.

6. Extension of Prospecting Licence granted to Bahrein Petroleum Company on 28th November, 1931.

7. Chief Local Representative of the Bahrein Petroleum Company

Kuwait

1. Applications of the Eastern and General Syndicate, Limited, and the Anglo-Persian Oil Company for an Oil Concession.

Extent and format
1 file (140 folios)
Arrangement

The file is divided up into two thematic sections. The correspondence within these sections is arranged chronologically. A table of contents is contained on folios 2-13

Physical characteristics

Condition: A printed pamphlet with bound pages.

Foliation: the foliation sequence is written in pencil, circled, and is 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.

Written in
English in Latin script
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Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎24r] (49/284), British Library: India Office Records and Private Papers, IOR/R/15/1/749/1, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100035849169.0x000033> [accessed 29 March 2024]

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