Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎88r] (177/284)

149
of Kuwait and the Anglo-Persian Oil Company, Limited (hereinafter called " the
Company ") relating to the search for production and handling of petroleum within
the territories of Kuwait.
Article 1. The Shaikh hereby grants to the Company the exclusive right to
explore throughout the whole of his territories as shown on the map* annexed hereto
(excepting only in the town of Kuwait, and in graveyards), and search for petroleum
and cognate products (hereinafter collectively referred to as " petroleum ") for a
maximum period of two years, that is until , 1934, at the latest, on
the conditions set forth below.
Article 2. In consideration of the exclusive right above granted and of the
assistance and protection which the Shaikh shall afford to the employees of the
Company the Company shall pay to the Shaikh Rs. 50,000 immediately on the signature
of this Agreement and shall pay Rs. 20,000 on the , 1933, unless the
drilling period mentioned in Article 3 shall commence on or before ,
1933, in which event this payment of Rs. 20,000 shall be cancelled.
Article 3. From the date of the expiration of the exploration period mentioned
in Article 1, that is, from the , 1934, at the latest, the Company shall
have, for a maximum period of two years, the exclusive right to import machinery and
workmen for searching for petroleum and shall drill in a workmanlike manner to a total
depth overall of at least 4,000 feet at such and so many places as the Company decide,
and at the commencement of this drilling period and on the same date in the year
immediately succeeding, that is, on the , 1934, and on ,
1935, at the latest, the Company shall pay to the Shaikh Rs. 25,000 in consideration
of the exclusive rights above granted and of the assistance and protection which the
Shaikh shall afford to the employees of the Company.
Article 4. As from the date of expiration of the drilling period mentioned in
Article 3, that is, from the , 1936, at the latest, the Shaikh undertakes
to grant for 70 years to the Company on the request of the Company the exclusive
right to search for and produce petroleum (excepting only in the town of Kuwait and in
graveyards) and the right to refine petroleum within and to export petroleum from the
territories of Kuwait on the conditions set forth below.
Article 5. On the date when the Shaikh grants to the Company the exclusive
right mentioned in Article 4, that is on the , 193G, at the latest, and
on each subsequent anniversary thereof during the currency of this Agreement and
pending the declaration set forth below the Company shall pay to the Shaikh Rs. 25,000
or royalty as set forth below, whichever shall be the greater sum. The Company shall
pay to the Shaikh a royalty of Rs. 2/10/- for every one ton of petroleum which the
Company shall produce over and above the petroleum required for its operations here
under, and so soon as the Company shall declare that petroleum has been found in
commercial quantities and quality the annual payment by the Company to the Shaikh
shall be Rs. 50,000 plus the total of the royalty accrued" with a minimum payment of
Rs. 65,000 in the first year, of Rs. 80 ; 000 in the second year and Rs. 100,000 yearly
thereafter, save only in the event of the interruption of the Companv's operations
hereunder by reason of events outside the control of the Company, in which event
payment shall continue to be made at the annual rate of Rs. 25,000!
Article 6. In connexion with its operations hereunder the Company shall have
the right freely to construct in the territories of Kuwait and to operate power stations,
refineries, pipelines and storage tanks, telegraph, telephone and wireless installations,
roads, railways, tramways, buildings, wharves and jetties, with such lighting as may
be requisite and any other works found necessary, and for such purposes to use freelv
(but not for export) any stone, sand, lime, gypsum, clay or water which may be avail
able and may be required for its operations hereunder. The Company shall at its
discretion but in consultation with the Shaikh select the position of any such works.
The Company may likewise freely utilise all such means as may be necessary for the
effective conduct of its operations hereunder.
Article 7. In consideration of the payments by the Company herein prescribed
and to assist in the development of the natural resources of Kuwait the Company shall
have the right for the purposes of its operations under this Agreement freely to import
or export without any taxes, duties or payments to the Shaikhfall machinery^ materials,
equipment or goods which may be required.
Article 8. The Company shall have the right to import water free and to use
local supplies as far as available for its operations and employees and the right to
* Not printed