'File 5/2 III Kuwait Neutral Zone' [‎309v] (623/779)

Government and the Company shall thereafter be free of all further obligations
under this contract, except as follows :—
(1) The Company's immovable property, such as roads, water or oil wells
with their casings, permanent buildings and structures, &c., shall
become the property of the Government free of charge. ^
(2) The Company shall afford the Government an opportunity to purchase
the movable property of the enterprise in Saudi Arabia at a fair price
equal to the replacement value of such property at the time, less
depreciation. Any controversy about this fair price shall be settled
by arbitration in the same manner as provided in article 31 of this
contract. If the Government declines or fails, within two months
following the date of the termination of this contract, to purchase
such movable property, or if the Government fails to tender the
purchase price within thirty days after it has been decided upon, by
agreement or arbitration, the Company shall then have six months
within which to remove such property.
Article 29.
In case of the breach by the Company of its obligation to make the second
payment of £20,000 gold, or its equivalent as provided in article 6 hereof, or of
its obligation to commence operations connected with drilling as set forth in
article 10 hereof, or of its obligation to make two advances of £50,000 gold, each,
or its equivalent under the terms and conditions provided in article 11 hereof, or
of its obligation under article 30 hereof to pay the amount of any damages which
may be assessed upon the Company, the Government’s remedy shall be the right
to give the Company notice at once for such breach, and thereupon if the Company
does not take immediate steps to comply with the obligation so breached, the
Government may terminate this contract.
Article 30.
Except as otherwise provided in article 29 hereof, the penalty for the breach
by the Company of any of its obligations under this contract shall be damages
which shall be payable to the Government under the following conditions : —
The Government shall at once notify the Company of any alleged breach on
the part of the Company, setting forth the nature of such breach. Any
controversy which may arise as to whether or not the Company has committed
the alleged breach shall be settled by arbitration in the manner provided in this
agreement. Once that the fact of the commission of the breach has been
established, the failure of the Company to take immediate steps to remedy the
breach shall subject the Company to the payment of damages to the Government,
and if such damages cannot be agreed upon they shall be determined by arbitra
tion in the manner provided in this contract. The amount of any damages which
may be determined shall be paid to the Government by the Company within
sixty days after such determination.
Article 31.
If any doubt, difference or dispute shall arise between the Government and
the Company concerning the interpretation or execution of this contract, or
anything herein contained or in connexion herewith, or the rights and liabilities
of the parties hereunder, it shall, failing any agreement to settle it in another
way, be referred to two arbitrators, one of whom shall be chosen by each party, and
a referee who shall be chosen by the arbitrators before proceeding to arbitration.
Each party shall nominate its arbitrator within thirty days of being requested in
writing by the other party to do so. In the event of arbitrators failing to agree
upon a referee, the Government and the Company shall, in agreement, appoint
a referee, and in the event of their failing to agree they shall request the
President of the Permanent Court of International Justice to appoint a referee.
The decision of the arbitrators, or in the case of the difference of opinion between
them the decision of the referee, shall be final. The place of arbitration shall be
such as may be agreed upon by the parties, and in default of agreement shall be
The Hague, Holland.
The Company may
rights and obligations i
the Company, upon noti
rights and obligations h
the purpose of this entei
invested with any or all
notification thereof to t
and conditions of this a
In the event that st<
be offered for sale to the
allowed a reasonable tin
to others), for at least 5
for sale to the general p
It is understood tin
be reckoned on the basis
The effective date oJ
Arabia, following the n
This contract has 1
most of the obligations
as the interpretation of 1
and requirements relati
through long practice a
agreed that while both
any divergence of inter
English text shall prevg
It is understood th;
be subject to ratificat
California, before it sha
been signed in duplica
registered mail in the
California, and within
shall transmit to the C
contract. If the contra(
that period, it shall be ]
Likewise, if the an
not ‘made within the tir
declare this contract to
Upon ratification o
text, together with the i
be returned to the Gov
Company, the contract
Signed this 29th d{
Letter to his h
Dear Sheikh Abdulla,
REFERRING to tl
of the Saudi Arab Gov
Oil Company of Califc
Eastern Saudi Arabia,
reached on behalf of th<