Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎108r] (217/284)

189
This is an Agreement made at Kuwait on the .... (hereinafter called
the " Agreement date ") in the year 1932 between His Excellency Shaikh, Sir Ahmad
al-Jabir as-Subah, Knight Commander of the Most Eminent Order of the Indian
Empire and Companion of the Most Exalted Order of the Star of India, the Shaikh
of Kuwait (hereinafter called " the Shaikh ") on his own behalf and in the name of
and on behalf of his heirs and successors in whom is or shall be vested the responsi
bility for the control and government of the Principality 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 Cbmpany the exclusive right through
out the whole of his territories as shown generally on the map annexed hereto,*
excepting only the area within the present town wall of Kuwait as well as mosques,
sacred buildings and graveyards, but including all islands appertaining to Kuwait
(hereinafter called " the defined area "), to explore and search for petroleum and
cognate substances (hereinafter collectively referred to as "petroleum") for a
maximum period of two years, that is until the Agreement date in 1934 at the latest,
on the conditions set forth below.
Article 2. Until the Agreement date in 1936 the Company shall have the exclusive
right to drill within the defined area and within a period of two years (hereinafter
called the " drilling years ") terminating prior to that date the Company shall so 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 may decide The Company shall duly close any
unproductive holes drilled by it and subsequently abandoned.
Article 3. As from the Agreement date in 1936 or from the Agreement date
next following the termination of the drilling years the Shaikh undertakes to grant for
70 years to the Company on the request of the Company the exclusive rights to search
for and produce petroleum within the defined area and the right to refine petroleum
within and to export petroleum or its products from the territories of Kuwait on
the conditions set forth below.
Article 4. (A) In consideration of the rights granted by the Shaikh to the Com
pany hereunder and of the assistance and protection which the Shaikh shall afford to
the Company and its employees and property the Company shall pay to the Shaikh
on the Agreement date in each year the following sums :—
On signature of the Agreement ... ... ... Es. 50,000
On each subsequent Agreement date :—
(a) prior to the drilling years ... ... Es. 20,000
(b) during the drilling years ... ... Es. 25,000
(c) after the grant by the Shaikh of the Es. 25,000 or royalty of
rights.specified in Article 3 above but Es. 2/10/- for every 1
prior to the declaration mentioned in ton of petroleum ob-
(d) below. tained and saved from
the ground over and
above the petroleum re
quired for the Com
pany's operations here
under whichever shall
be the greater sum.
(d) After the Company shall have declared Es. 50,000 in addition to
that petroleum has been found in royalty of Es. 2/10/-
commercial quantities and quality as above defined subject
to a minimum in total of
(i) Es. 65,000 on the
first Agreement date
after the declaration
has been made;
(ii) Es. 80,000 on the
second such Agree
ment date; and
(hi) Es. 100,000 on the
third and each subse
quent sucK Agreement
date;
* Not reproduced.