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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [8v] (16/1153)
The record is made up of 1 file (574 folios). It was created in 8 Dec 1923-11 Jul 1945. 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. .
Transcription
This transcription is created automatically. It may contain errors.
4
r
Article 14.
I he Company shall pay the Government a royalty on all net crude oil
produced and saved and run from field storage, after first deducting—
(1) Water and foreign substances; and
(2) Oil required for the customary operations of the Company’s installations
within Saudi Arabia; and
(3) The oil required for manufacturing the amounts of gasoline and kerosene
to be provided free each year to the Government in accordance with
article 19 hereof.
I he rate of royalty per ton of such net crude oil shall be either—
(a) Foui- shillings gold, or its equivalent; or
(b) At the election of the Company at the time of making each royalty
payment, 1 dollar, United States currency, plus the amount, if any,
by which the average rate of exchange of 4 shillings gold, during
the last half of the semester for which the royalty payment is due,
may exceed 1 dollar and 10 cents, United States currency. Thus,
for example, if such average rate should be 1 dollar and 14 cents,
l nited States currency (that is to say, 5 dollars and 70 cents per gold
pound), the royalty rate would be 1 dollar and 4 cents, United States
currency, per ton of such net crude oil.
Article 15.
If the Company should produce, save and sell any natural gas, it will pay to
the Government a royalty equal to one-eighth of the proceeds of the sale of such
natural gas, it being understood, however, that the Company shall be under no
obligation to produce, save, sell, or otherwise dispose of any natural gas. It is
also understood that the Company is under no obligation to pay any royalty on
such natural gas as it may use for the customary operations of its installations
within Saudi Arabia.
Article 16.
The Government, through duly authorised representatives, may, during the
usual hours of operations, inspect and examine the operations of the Company
under this contract and may verify the amount of production. The Company
shall measure in accordance with first-class oilfield practice the amount of oil
produced and saved and run from field storage, and shall keep true and correct
accounts thereof, and of any natural gas it may produce and save and sell and
duly authorised representatives of the Government shall also have access at all
reasonable times to such accounts. The Company shall, within three months after
the end of each semester, commencing with the date of commercial discovery of
oil, deliver to the Government an abstract of such accounts for the semester, and a
statement of the amount of royalties due the Government for the semester. These
accounts and statements shall be treated as confidential by the Government, with
the exception of such items therein as the Government may be required to publish
for fiscal purposes.
The royalties due the Government at the end of each semester, commencing
with the date of commercial discovery of oil, shall be paid within three months
after the end of the semester. In case of any question as to the amount of
royalties due for any semester, such portion of the amount as may be unquestioned
shall be tendered the Government within the period hereinabove provided, and
thereupon the question shall be settled by agreement between the parties, or, failin<>‘
that, by arbitration as provided in this contract. Any further sum which may be
payable to the Government as a result of this settlement shall be paid within
sixty days after the date of such settlement.
Article 17.
It is agreed that all gold payments provided in this contract, whether pounds
gold or shillings gold, are to be based on the gold pound standard according to
its weight and fineness at the time the payments may be due. It is also agreed
that wherever it is stipulated in this contract that the equivalent of any sum or
amount in pounds gold or in shillings gold may be paid, such equivalent may be
dollars in United States currency, or pounds sterling.
It is agreed, furthermore, that the equivalent of pounds gold or shillings
gold, for any payment which may be made hereunder in dollars. United States
About this item
- Content
This file relates to oil concessions in Saudi Arabia, particularly the Hasa [Al Hasa] concession between the Government of Saudi Arabia and the Standard Oil Company of California (SoCal). It includes discussion of the following:
- Oil negotiations in Saudi Arabia during March and April 1933, and the reported involvement of Major Frank Holmes in negotiations relating to the Kuwait (also spelled Koweit in the file) [Saudi-Kuwaiti] neutral zone.
- Details of an agreement for the oil concession relating to the Hasa region of Saudi Arabia, made between the Government of Saudi Arabia and SoCal (signed on 27 May 1933), and assigned by SoCal to its subsidiary, the California Arabian Standard Oil Company (Casoc).
- British concerns regarding a request made by Casoc via the United States Embassy for its aeroplane to be permitted to fly over Kuwait and Bahrain, as part of a survey of the region relating to its oil concession.
- Reports that Casoc may be interested in exhanging the southern half of its Hasa concession for land further west, and the effect that this might have on Britain's negotiations with Ibn Saud [‘Abd al-‘Azīz bin ‘Abd al-Raḥmān bin Fayṣal Āl Sa‘ūd].
- Reports of the discovery of oil in Hasa in 1935, and the discovery of commercial quantities of oil there in March 1938.
- Reports that Casoc is considering the possibility of laying a pipeline from Hasa to Bahrain.
- Casoc's oil rights in the Kuwait neutral zone.
- The progress of operations carried out in Hasa by Casoc, including the status of its wells at Dhahran.
- An account of a visit made by the Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. at Bahrain (Hugh Weightman) to Casoc's site at Dhahran as well as to other areas in the region, in May 1939.
- Details of a loan from Casoc to the Government of Saudi Arabia.
- Reports of Casoc having taken the decision to construct a refinery at Ras Tanura.
The file features the following principal correspondents: 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. in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. ; the Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. , Bahrain; the Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. , Kuwait; the Secretary of State for the Colonies; His Majesty's Chargé d’Affaires, Jedda; the His Majesty's Minister at Jedda; officials of the Foreign Office, 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. , the War Office, the Air Ministry, and the Petroleum Department; representatives of Casoc.
In addition to correspondence the file includes the following:
- Copies of the oil agreement and a supplementary agreement between the Government of Saudi Arabia and the Standard Oil Company of California, dated 1933 and 1939 respectively.
- Extracts from Bahrain and Kuwait intelligence reports.
- The minutes of an interdepartmental meeting held at the Colonial Office on 26 April 1933, concerning British interests in oil in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. (notably Kuwait, Bahrain, Hasa in Saudi Arabia, and the Kuwaiti neutral zone).
- Draft and final copies of a War Office report entitled 'Brief Summary of the Oil Situation in the Middle East, November 1934'.
The date range of the volume is 1923-1945 but only a handful of items date from before 1933. These include copies of 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. in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. 's correspondence with the Secretary of State for the Colonies and the Foreign Secretary to the Government of India respectively, which date from 1923 to 1926 and concern the possibility of oil development both in Qatar and on the Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. .
The file includes three dividers which give a list of correspondence references contained in the file by year. These are placed at the back of the correspondence (folios 2-4).
- Extent and format
- 1 file (574 folios)
- Arrangement
The papers are arranged in approximate chronological order from the rear to the front of the file.
- Physical characteristics
Foliation: the foliation sequence for this description commences at the inside front cover with 1, and terminates at the last folio with 575; these numbers are written in pencil, are circled, and are 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. A previous foliation sequence, which is also circled, has been superseded and therefore crossed out.
- Written in
- English in Latin script View the complete information for this record
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Copyright: How to use this content
- Reference
- IOR/L/PS/12/2115
- Title
- Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)'
- Pages
- 7r:11r, 11v:14v, 61v:64v, 97v:101v, 148r:149v, 235r:243v, 250r:251v, 423r:439v, 458v:462v
- Author
- Unknown
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- The copyright status is unknown. Please contact copyright@bl.uk with any information you have regarding this item.