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Coll 30/123(2) 'Bahrein (Unallotted Zone) Oil Concession: Negotiations with Petroleum Concessions Ltd.' [‎61r] (121/1195)

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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\\
Ji,
- 2 -
Unallotted Area or portions thereof, since he appears
to have always in mind the, probably exaggerated, fear
that the Bahrein Petroleum Company, in the event of a
rebuff, would deliberately cut down their production of
oil in Bahrein to the existing minimum royalty figure
and supply the balance of refinery requirements from
Arabian production- Nevertheless, if you agree with
the foregoing analysis of the American Company’s offer,
you may consider it desirable, in the Sheikh’s own interest,
to make quite certain, through the Resident, that he
fully appreciates the position*
4. If, however, it is clear that the Sheikh has
made up his mind with his eyes open, the Admiralty agree
that he should be allowed to grant the concession for the
whole area, including the Hawar Islands, to the Bahrein
Petroleum Company.
5. We feel, however, that every endeavour should
be made to secure the following conditions:-
(a) That, as you suggest in your letter, a
caveat should be inserted in the agreement
between the Sheikh and the Company in
respect to the Sovereignty of the Hawar
Islands.
(b) That the Company shall enter into a pre-emption
agreement to the effect that in the event of
a state of national emergency or war (of which
H.M. Government shall be the sole judge) H.M.
Government shall have the right of pre-emption
of all the oil produced or refined by the
Company within the Sheikhdom of Bahrein.
(c) That the Company should undertake to give
a guarantee to H.M. Government to refine, in
time of war, a stipulated minimum quantity
of crude oil to whatever specification
the Admiralty should consider the most
suitable for their purposes at the time.
6. We assume that the undertaking of the Company
in the agreement as summarised in paragraph 3 1(c) of
Weightman*

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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.' [‎61r] (121/1195), British Library: India Office Records and Private Papers, IOR/L/PS/12/3854, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100054901060.0x00007c> [accessed 23 April 2024]

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