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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [‎130r] (259/1153)

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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 Documents collected in a private capacity. .

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■■■■PPatHBa
THE BAHRAIN PETROLEUM COMPANY LIMI
MEMORANDUM.
June 2
The subject of importing oil from Arabia was discussed
this morning by Mr. Deacon and Mr. Belgrave in the latter* s
office. The question of duties and royalties was briefly re
viewed. The point was brought up that whereas it was agreed
the imported oil was royalty free, it is plainly stated in
our concession agreement that oil used to refine the import
ed crude is definitely subject to royalty.
The next item to be discussed was the gauging of the
imported oil. The Company’s proposed general plan of handling
this oil was outlined as follows:-
(1) Receive oil in Bahrain Petroleum Company barges
at A1 Khobar.
( 2 ) Transport to Zellaq.
(3) Unload barges at Zellaq into small gauging tanks.
(4) Have Government gauges taken.
(5) Pump the Arabian oil thru to Tanks 152 and 153 at
Refinery.
( 6 ) Subtract quantity of Arabian oil from the general
gauge into tanks 152 and 153 and thus obtain the
amount of Bahrain crude released to the Refinery.
It was agreed that whereas the crude is gauged in Arabia,
still it is subject to some possible loss in transporting it
to Bahrain and it should therefore be gauged upon arrival at
Zellaq.
It was pointed out that this oil would be delivered from
Zellaq direct to the royalty gauging tanks at the Refinery, us
ing that part of the gathering system from No. 5 Tank Battery
onwards. On this account the gauging at Zellaq should be exact
ly done so that by subtracting the amount of Arabian Crude pump
ed thru to Tanks 152 and 153 from the total amount of crude oil
delivered to the Refinery, the amount of Bahrain crude subiect
to royalty can be obtained. J
This procedure was agreeable to both parties. The ques
tion of cor ect measurement of the Arabian crude into Zellaq
tanks was next brought up. Inasmuch as these are small tanks
and the cost of having Redwoods of London send a man out to
strap these tanks seemed prohibitive, and since it is very ppe
probable that Redwoods will be sending a man out later in the
year to strap other tanks now contemplated, it was agreed that
it v/ould be satisfadtory to have one of our engineers strap these
tanks under the supervision of a Government representative.
The measurements secured would then be sent to Redwoods
in London for calculation and preparation of proper gauge charts.
Later in the year when Redwoods will probably have a man in Bah
rain, he will again strap these tanks for a check, and if any
discrepancy is found on comparison with the original figures,
adjustments would be made to the gauges taken to date.
A copy of the foregoing is to be sent to The California
standard Oil Coy. in London, for their viev/s, and a final
procedure will be drawn up along these lines, and submitted to
the Government and 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. .
3d/- C. Dalrymple Belgrave Sd/- C.W. Deacon

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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 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.

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English in Latin script
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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [‎130r] (259/1153), British Library: India Office Records and Private Papers, IOR/L/PS/12/2115, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100040749881.0x00003e> [accessed 29 March 2024]

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