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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [‎459r] (919/1153)

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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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3
4
Article 5.
Directly after the date on which this agreement comes into force the
Oompany shall proceed with its plans together with other preparations for
geological work and arrangements for work, so that it may make use of the cold
weather which enables it to undertake effectual field work, and to carry out the
clerical work and make reports, &c., during the hot season. In any case, the field
work should not be delayed more than the end of September 1933. Such work
should be energetically and strenuously continued till the beginning of digging
operations or up to the end of the agreement.
Article 6.
Within ninety days from the date on which digging operations start the
Company shall leave or surrender to the Government the places (areas) of the
allowed zone which the Company may decide are not needed for further work or
for use in another form or manner in connexion with this project. The Company
should also surrender to the Government from time to time during the period
of this agreement other areas which the Company may decide are no onger
required for inspection or investigation and for use for any purpose which may
have connexion with this scheme. All the places (areas) which are given up by
the Company will be released from the restrictions and conditions of this
agreement, but the Company will have the permanent right to employ those areas
for the purposes of transport and communications during the duration of this
agreement, provided that this practice should have a slight connexion only with
the other form or method in which these parts (areas) surrendered by the
Company can be used.
Article 7.
The Company should begin with the operations of digging as soon as it (the
Company) discovers the place suitable for the same, and, in any case, if the
Company fails to proceed with the operations of digging within a period of three
years as from the end of September 1933 (subject to the observation of the
provisions of article 24 of this agreement), the Government may then terminate
this agreement. Whenever the Company begins with the operations of digging,
it should persevere with energy until it discovers oil in commercial quantities or
until it terminates this agreement, and if the Company fails to give notice
regarding the date on which oil is discovered, then the date to be fixed for this
purpose will be counted as from the date on which the Company completed the
digging of one well or wells, examines them and discovers that they can supply
not less than 2,000 tons of crude oil daily and for a period of thirty days
consecutively in conformity with the reliable practice observed in first-class oil
fields. The operations of digging include the ordering of tools and other machines
and their shipment to Saudi Arabia, and also include the preparation of roads,
camps, buildings, fittings, transport, communications and fitting machines and
other means for well-digging.
Article 8.
Immediately after the discovery of oil in commercial quantities the Company
should give the Government the loan already agreed upon, and after one year
another loan should be given to the Government. The date of paying the first
loan will be the date on which oil is discovered in commercial quantities as
provided for in this agreement, and the date of offering the second loan will be
after one year from that date, and in both cases the Government will grant the
Company a period of sixty days’ delay so as to enable it to pay the loan during
that period.
Article 9.
As it has been agreed that the annual rent will be paid up to the date of
discovering oil in commercial quantities, and as it has also been agreed that the
annual rent should be paid in advance, therefore it is possible that the last
payment of the annual rent before the date of discovering oil in commercial
quantities may include a certain period after the date on which the oil is
discovered, and if this extra period is equal to one-fifth of the year or more, the
amount proportionate to that period will be considered as a loan due by the
Government.
[879 q—5] B 2

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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.

Written in
English in Latin script
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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [‎459r] (919/1153), British Library: India Office Records and Private Papers, IOR/L/PS/12/2115, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100040749884.0x00007a> [accessed 26 April 2024]

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