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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [‎461v] (924/1153)

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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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8
Article 27.
If the Company fails in any of its engagements provided for in this agreement
(except those mentioned in article 24), it shall be liable to punishment by means
of a fine to be paid to the Government under the following conditions :—
The Government shall warn the Company immediately about any breach
attributed to it, and explain to the Company the facts of this breach.
Any dispute which may arise as to whether the Company has committed
such a breach of its engagements or otherwise will be settled in accordance with
the method mentioned in this agreement, and if it is proved that the Company
has committed such a breach, but has failed to take immediate steps in this respect
it shall then be liable to pay compensation for the damage caused to the Govern
ment. If they cannot reach an agreement as to the amount of compensation, it
can be settled by the means of arbitration provided for in this agreement. The
Company should then pay the Government the amount of compensation decided by
arbitration within a period of sixty days, as from the date on which such decision
is given.
Article 28.
If any doubt, difficulty or difference arises between the Government and the
Company in connexion with the interpretation of this agreement or its execution,
or in the interpretation of anything in it or its execution, or in the rights of the
two parties or their engagements, and if the two parties fail to settle the same
by any other method, the case shall be settled by means of two arbitrators to be
selected by the two parties (each party selecting one arbitrator), and one chairman
to be appointed by the arbitrators before starting the arbitration. Each party
should appoint his arbitrator within a period of thirty days as from the date of
the application to be forwarded by the other party in writing. If the two
arbitrators fail to appoint the chairman, the Government and Company should
appoint the chairman by mutual agreement. If they fail to do this, they should
ask the president of the Permanent Court of International Justice to appoint the
chairman, who will be considered as chief arbitrator in the case, and if the two
arbitrators do not agree upon any suggestion, the arbitration of the chairman (or
the chief arbitrator) shall be considered final. The two parties should agree upon
fixing the place for arbitration, and, in case of their failure, the place to be fixed
for this purpose shall be The Hague, Holland.
Article 29.
The Company is not allowed to transfer its rights and obligations provided
for in this agreement without the consent of the Government, but it is understood
that the Company may have the right to transfer its rights and obligations
provided for in this agreement to another company, which may be established by
the contracting Company in connexion with this concession, after giving notice to
the Government to this effect. The Company will also have the right to establish
other companies and preparations of said nature if it appears to the Company
that they are necessary for the purpose of carrying out the affairs of this
concession. As soon as the companies and other establishments newly
established become entitled to part of the rights and undertakings provided for in
this agreement or for all of them, they shall also become bound by the conditions
and provisions of this agreement. In case the company newly established issues
shares for public sale, the inhabitants of the Saudi "Arab kingdom should be
allowed a reasonable time for the purpose of subscribing (under the same
conditions offered .to others), with 20 per cent, at least of the amount of the shares
which will be offered for sale.
Article 30.
It is understood that periods referred to in this agreement shall be calculated
on the basis of the solar calendar.
Article 31.
The date on which this agreement shall be considered as coming into force
shall be the date of its publication in the Saudi Arab country after its ratification
by the Company.

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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)' [‎461v] (924/1153), British Library: India Office Records and Private Papers, IOR/L/PS/12/2115, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100040749884.0x00007f> [accessed 8 May 2024]

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