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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [‎470r] (941/1153)

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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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7013 [879 1—1] b
CONFIDENTIAL. Section 1.
[E 4540/487/25] No. 1.
Memorandum respecting Petroleum in Arabia (as revised by Petroleum
Department.—(Received in Foreign Office, August 11, 1933.)
(A) —Petroleum Prospects of Arabia.
(1) LITTORAL Region of the Hejaz. —Petroliferous deposits and seepage
have long been known to exist in this area. Interest in it was stimulated by
Mr. Twitchell’s survey in 1931 in the coastal region north of Jed^a, but this
area seems to have dropped into the background of late. In a report furnished
by the Anglo-Persian Oil Company to the Petroleum Department in 1932, it
was pointed out that the general structure of the Red Sea is known geologically
as a “ Rift Valley,” that is, a sunken valley bounded on either side by rift faults.
The prospects of finding oil in commercial quantity are considered to be remote,
though not entirely non-existent, and even after a complete survey, “ Rift Valley
conditions ’ ’ are such that any test drilling would be very speculative.
(2) Hasa and Koiveit Neutral Zone .—It has been thought for many years
that this region might produce oil. The idea that it may be underlain by rocks
of the same geological age as those of the Iraq and Persian oil-fields, and that
potential oil structures might exist extending from Koweit to Qatar inclusive,
has been encouraged by the striking of oil in quantity in Bahrein in 1932.
(3) The Farsan Islands and A sir .—Interest in these islands and/or the
mainland of Asir, from the point of view of petroleum potentialities, seems to
date from before the Great War. Operations were actually started on one of
the islands by the Red Sea Petroleum Company, a subsidiary of the Shell Group,
in 1926 or early in 1927, but drilling operations were subsequently abandoned as
unsuccessful. As to Asir, see (D) (2).
(4) Mokalla. —In 1928-29 the Anglo-Saxon Petroleum Company (Shell
Group) carried out investigations, and reached the conclusion that the petroleum
prospects were quite unfavourable.
(5) Muscat. —The Anglo-Persian Oil Company abandoned this area as.
unfavourable in 1925-26.
(B) Interested or Potentially Interested Companies.
(1) The Iraq Petroleum Company. —The Turkish Petroleum Company (now
the Iraq Petroleum Company) was formed in 1912, when the Deutsche Bank
became associated with the National Bank of Turkey and the Anglo-Saxon
Petroleum Company (Royal Dutch Shell Group), in order to press certain claims
to oil rights in Bagdad and Mosul, including those attached to the Bagdad
Railway Concession. The chief rival of the new company at that time was the
Anglo-Persian Oil Company, which had for some time been in negotiation with
the Turkish Government. In 1914 an agreement was entered into providing
for the reconstitution of the Turkish Petroleum Company, from which the
National Bank of Turkey withdrew, the new participants being the Anglo-
Persian Oil Company, 50 per cent.; the Anglo-Saxon Petroleum Company and
the Deutsche Bank, 25 per cent. each. This agreement also provided that the
three groups should give undertakings not to be interested directly or indirectly
in the production of oil in the Ottoman Empire in Europe and Asia (excluding
Egypt, Koweit and the Transferred Territories), except through the Turkish
Petroleum Company. This agreement was signed by the British and German
Governments, and by the groups concerned. As the Turkish Petroleum Company
was then predominantly British, this arrangement had the effect of securing the
whole of this area to interests which were predominantly British. After the
war American and French interests were admitted into the Iraq Petroleum

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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)' [‎470r] (941/1153), British Library: India Office Records and Private Papers, IOR/L/PS/12/2115, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100040749884.0x000090> [accessed 18 April 2024]

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