Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎98r] (197/284)

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(a) the Company shall be one organized transfer the obligations and benefits of
and registered either in Great Britain the Concession to any British Company,
or Canada with an office in Great
Britain at all times in charge of a
British subject ; (h) of the five Directors
of the Company, one Director shall at
all times be a British subject who shall
be acceptable to His Majesty's Govern
ment ; (c) the Company shall at all times
maintain in the region of the Persian
Gulf an official called the Chief Local
Representative of the Company, whose
appointment shall be approved by His
Majesty's Government; (d) as many of
the employees of the Company as is
consistent with the efficient carrying on
of the undertaking shall be British sub
jects or subjects of the Shaikh.
Comment.
While His Majesty's Government has informed the Eastern and General Syndicate
that they are prepared for their part not to insist that any Concession granted by the
Shaikh must contain a clause confining it to British interests, if the Shaikh for his part
is willing to grant a Concession without such a clause; it has also made it clear that in
respect of the provisions proposed by the Eastern and General Syndicate which are
quoted abo\e and which will enable a transfer to a foreign controlled companv to
be effected, revision will be needed to safeguard the interests of His Majestv's
Government.
A decision as to the exact form of the safeguards has not yet been taken, but this
will not pie\ent the Shaikh from considering m other respects the relative merits of the
two draft Concessions.
The provision made by the Anglo-Persian Oil Company will prevent any Concession
which might be granted to that Company passing away from a British company.
General Observations.
The foregoing notes deal with the more important provisions of the draft Con
cessions and will it is thought enable the Shaikh to reach a decision as to which
application is likely to be more acceptable to him.
Besides the points dealt with there are certain provisions which ought to be
included m any Concession which may be granted of which the following are the more
important. Some of these may be covered in part by the existing drafts :—
(1) During the exploratory period the work of exploration should be com-
menced within a specified period and carried on continuouslv under the
supervision of a fully qualified petroleum geologist. Correct geological
plans and records should be kept, which should be open to inspection by
the Shaikh or his representatives at all reasonable times.
(2) The Company should give an undertaking at all times during the con
tinuance of the Concession to carry on all operations for winning and
working crude oil and natural gas in a skilful and workmanlike manner and
m accordance with modern approved methods; to maintain all productive
borings m good repair, working order and condition and to take all
practical measures to prevent the injurious access of water to the oil-
bearmg formations.
(3) The Company should furnish an annual report of their operations, together
with a plan showing the location of all wells drilled. They should also keep
accurate records of the drilling logs of all wells, showing all casing inserted
and any water horizons passed through.
(4) All abandoned boreholes should be plugged so as to prevent ingress of
, J ater ' ^nd excavations fenced off if the Companv is required to do so.
(o) f here should be a provision for the measurement of any oil won for
purposes of ascertainment of royalty. A draft of a suitable clause is
appended.
(6) It may be desirable to provide for the revision of the rate of royalty at
intervals of, say, 10 years, on the application of either party, such revision