Coll 30/87(2) Part II 'Qatar: Oil Concession - P.C.L.'s Operations.' [‎247v] (501/603)

^The concession of the Bahrain Betroleun Company covers all lands,
islands, shoals, reefs, waters and submerged lands over which the Sheikh/^*?
now has dominion, or which may, after the date of this deed,cone under the
the dominion of the Sheikh or his successor^,” That of Bstroleun
Concessions, Ltd. in respect of Qatar covers M the Principality of Oatar ,, , a - ,
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During the War
moratorium from the
pursue geological w
troleum Conipany have been released by a
Concession additional to an area on the main Islands designated on the map
in their first lease) '♦with diligence and without unnecessary delay* and
■ttny have 'made no additional drillings in Bahrain# They are now anxious to
make further drillings at the points marked in the map flagged.
P.C.L. have also written to us in^similar connection (see their letter
of 16th July flagged). They had hardly begun work in Qatar when the War
came and all operations had to be closed down. They are now starting up
operations there and want particularly to know their position as regards
the waters between Qatar and the Hawar Islands (which, though lying off the
Qatar Coast^were awarded to Bahrain by H.M.G. in 1939)*
There seems t ’ " J ttle doubt that oil exists under the sea between
Bahrain and Qatar, W'ho drilling has
so far been done there. The
Bahrain Petroleum Company have had better opportunities to investigate the
possibilities than P.C.L. and there are indications that they have
substantial hopes of the oil prospects there. It is no doubt with
reference to the terms of BAPCO’s Concession Areajthat the Bahrain
Government have of recent years been erecting oi^^S^on various reefs and
islets outside Territorial Waters with a view to claiming them for
Bh£rain (it is doubtful however whether we can accept such a procedure
as a valid method of adding territory to Bahrain).
» li/U/}
What I think we should aim at is to draw on the map a dividing
line roughly midway between Bahrain and Qatar, thus demarcating once and
for all the areas in which the prospective Oil Companies may operate.
(I have drawn in a suggestion for such a line in red on the map
indicating at the same time the extent of Bahrain and Qatar Territorial
Waters). Once we start admitting claims of one or the other State to this (Ui 7 ^
or that reef or patch of sand outside Territorial Waters, we shall get l
involved in endless disputes. It seems best that such a line should be
drawn as soon as possible^ before the Oil Companies have had time to
start drilling near the disputed areas. Meanwhile we should not let
BAPCO drill near the doubtful area, not even on the Hawar Islands, if
we can help it, though these Islands fall clearly within the Additional
Area of BAPCO's Concession. H.M.G. must insist on having the last word
in deciding just how this line should run. The line might be regarded f
either as a working guide to the area in which H.M.G. are willing to
permit the respective Oil Companies to operate, each Ruler automatically
acquiring sovereignty over the particular spot where his own Concessionary
Oil Company engages in operations, or as dividing the sea bed both within
and without Territorial Waters between Bahrain and Qatar, and allotting
to each Ruler sovereignty over his respective portion. In the latter/ case
the application of the principles of President Truman’s Proclamation
regarding the Continental Shelf is involved. (Papers have been recently
submitted). The first step seems to be however to see whether 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. can produce a recommendation for such a line.
A draft express letter to 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. is submitted,
together with an interim reply to P.C.L.