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Coll 30/123(2) 'Bahrein (Unallotted Zone) Oil Concession: Negotiations with Petroleum Concessions Ltd.' [‎60r] (119/1195)

The record is made up of 1 file (596 folios). It was created in 4 May 1938-19 May 1939. It was written in English and Arabic. 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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M.01463/39.
1 r>A/?*7 i
U O •/
Military Branch,
Admiralty, S.W.1.
^31st March, 1939.
1939
Immediate and Confidentlal*
Dear Peel,
In reply to your letter No. P.Z.1111/39 dated
March 1st, I am now able to give you the views of the
Admiralty on the Sheikh of Bahrein’s proposal to grant
the concession for the whole of the Unallotted Area,
including the Hawar Islands, to the Bahrein Petroleum
Company.
2. Our first observation is that the financial
terms offered by the Company are in substance not so
generous as they may appear to be on the surface.
As we understand it, the minimum annual royalty which
they are offering to guarantee for the next fifteen
years is only about half that already derived from
present production in Bahrein, so that provided the
existing oil field produces for the next fifteen years
at little more than half its present rate, the Company
would be able to make up its guarantee without difficulty
on the existing field. As no additional payment is
offered other than the initial 400,000 rupees Indian silver coin also widely used in the Persian Gulf. for the
new fields, the net effect is that, leaving aside the
remote possibility of the failure of their present field
(when they might in any case be unable to meet their
obligations) they pay nothing, beyond a small sum down,
for the rights over the Unallotted Area, including the
Hawar Islands.
3. We recognise that in any event the Sheikh is
unlikely to be much influenced by a simple comparison
of/
R.T. Peel, Esq., M.C'
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. ,
S. W. 1.
POL* D ES**.
- 1APR1939
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.

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Content

The file concerns negotiations between the Government of Bahrain and two oil companies: Petroleum Concessions Limited (PCL) and the Bahrain Petroleum Company (BAPCO) over oil concession rights in the Bahrain Unallotted Area, i.e. those parts of Bahrain territory (including the Hawar Islands), and offshore areas, not forming part of the concession awarded to BAPCO in 1925. The papers show that the Ruler of Bahrain, Hamad bin Isa Alkhalifah [Ḥamad bin ‘Īsá Āl Khalīfah], initially wished to divide the Unallotted Area between the two companies, but later wished to award the Unallotted Area in its entirety to BAPCO, subject to the approval of the British Government.

The file contains correspondence from representatives of both companies, 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; British Government departments; Charles Dalrymple Belgrave, Adviser to the Government of Bahrain; and the Ruler of Bahrain.

The papers include: draft PCL agreements; comments on the progress of negotiations by 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. 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. , Bahrain; the views of the Foreign Office, Petroleum Department, and the Admiralty; a description 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. , Bahrain (Hugh Weightman) of the areas to be offered to the two companies, based largely on an aerial survey (folios 536-540); the territorial status of the Hawar Islands; the financial implications of the two potential concessions; minutes of a meeting between British Government officials at 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. , 7 July 1938 (folios 346-352); the issue of underwater boring for oil, and territorial waters; the role in the negotiations of the PCL representative, Major Frank Holmes; minutes of meetings between the Government of Bahrain and the representative of PCL; minutes of meetings between the Government of Bahrain and the representative of BAPCO; a comparative statement of the offers made by the two companies (folio 94); and a further bid by Holmes and PCL in 1939 for rights over the 'Shoal Area', Bahrain.

The Arabic content of the file consists of a letter from the Ruler of Bahrain, with English translation, and the bilingual texts of draft concession agreements between PCL and the Ruler of Bahrain.

The file includes a divider, which gives a list of correspondence references contained in the file by year. This is placed at the back of the correspondence.

Extent and format
1 file (596 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 (used for referencing) commences at the inside front cover with 1, and terminates at the last folio with 597; 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 and Arabic in Latin and Arabic script
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Coll 30/123(2) 'Bahrein (Unallotted Zone) Oil Concession: Negotiations with Petroleum Concessions Ltd.' [‎60r] (119/1195), British Library: India Office Records and Private Papers, IOR/L/PS/12/3854, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100054901060.0x00007a> [accessed 25 April 2024]

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