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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [‎97v] (194/1153)

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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.

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2
Text of the Oil Agreement between the Standard Oil Company of California
and His Majesty King Abdul Aziz-aTSaud.
THIS agreement made between his Excellency Sheikh Abdulla Suleiman
Hamdan, Minister of Finance of Saudi Arabia, acting on behalf of Saudi Arab
Government (hereinafter referred to as the “ Government ”), of the one part and
L. N. Hamilton, acting on behalf of the Standard Oil Company of California
(hereinafter referred to as the “ Company ”), of the other part.
It is hereby agreed between the Government and the Company in manner
following :—
Article 1.
The Government hereby grants to the Company on the terms and conditions
hereinafter mentioned, and with respect to the area defined below, the exclusive
right, for a period of sixty years from the effective date hereof, to explore,
prospect, drill for, extract, treat, manufacture, transport, deal with, carry away
and export petroleum, asphalt, naphtha, natural greases, ozocerite, and other
hydrocarbons, and the derivatives of all such products. It is understood, how
ever, that such right does not include the exclusive right to sell crude or refined
products within the area described below or within Saudi Arabia.
Article 2.
The area covered by the exclusive right referred to in article 1 hereof is all
of Eastern Saudi Arabia, from its eastern boundary (including islands and
territorial waters), westward to the westerly edge of the Dahana, and from the
northern boundary to the southern boundary of Saudi Arabia, provided that
from the northern end of the westerly edge of the Dahana the westerly boundary
of the area in question shall continue in a straight line north, 30 degrees west,
to the northern boundary of Saudi Arabia, and from the southern end of the
westerly edge of the Dahana, such boundary shall continue in a straight line
south, 30 degrees east, to the southern boundary of Saudi Arabia.
For convenience this area may be referred to as the “ exclusive area.”
Article 3.
In addition to the grant of the exclusive area referred to in article 2 of this
agreement, the Government also hereby grants to the Company a preference right
to acquire an oil concession covering the balance of eastern Saudi Arabia
extending as far west of the westerly boundary of the exclusive area as the contact
between the sedimentary and igneous formations. This preference right includes
such rights as the Government may now have, or may hereafter acquire, in the
so-called Neutral Zone bordering on the Persian Gulf Historically used by the British to refer to the sea area between the Arabian Peninsula and Iran. Often referred to as The Gulf or the Arabian Gulf. to the south of Koweit.
The nature of this preference right is to be hereafter agreed upon. The term
c ‘ oil concession ” as used in this article means an exclusive concession covering
the same products which are covered by the present agreement. Furthermore,
the Company’s geologists shall have the right to examine the region covered
by the preference right just referred to (excepting the Neutral Zone referred
to above), in so far as such examination may be necessary or advisable for a better
understanding of the geological character of the exclusive area.
Article 4.
Within the time agreed in article 18 of this agreement, the Company shall
make a payment to the Government of £30,000 gold, or its equivalent.
Article 5.
The Company shall pay the Government annually the sum of £5,000 gold, or
its equivalent. For convenience this payment is termed an “ annual rental ” and
it is payable in advance. The first annual rental shall be paid within the time
agreed in article 18 of this agreement; thereafter so long as the contract is not
terminated, the annual rental shall be due upon each anniversary of the effective

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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 Historically used by the British to refer to the sea area between the Arabian Peninsula and Iran. Often referred to as The Gulf or the Arabian Gulf. ; 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:

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 Historically used by the British to refer to the sea area between the Arabian Peninsula and Iran. Often referred to as The Gulf or the Arabian Gulf. '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 The historic term used by the British to refer to the Gulf coast of Trucial Oman, now called 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
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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [‎97v] (194/1153), British Library: India Office Records and Private Papers, IOR/L/PS/12/2115, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100040749880.0x0000c5> [accessed 22 February 2020]

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