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Coll 30/91(2) 'Koweit Oil Concession: Agreement between the Shaikh of Kuwait and the Kuwait Oil Coy.' [‎114r] (232/788)

The record is made up of 1 volume (390 folios). It was created in 19 Nov 1934-11 Oct 1935. 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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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. .
Confidential.
Memo. No. 432 A
IL °° m ™ eroial Agreement between the Sheikh of Koweit and
the Kuwait Oil Company, dated 23rd December 1934 .
IN THIi NAME OF GOD THE MERCIFUL.
THIS IS AN AGREEMENT
made Kuwait on the 23rd day of
December in the year 193d corre
sponding to 16th day of Ramadham
1353 between His Excellency Shaikh
Sir Ahmed al-Jabir as-Subah, Knight
Commander of the Most Eminent Order of the Indian Empire and Companion
of the Most Exalted Order of the Star of India, the Shaikh of Kuwait in the
exercise of his powers as Ruler of Kuwait on his own behalf and in the name
of and on behalf of his heirs and successors in whom is or shall be vested for
the time being the responsibility for the control and government of the State
of Kuwait (hereinafter called “the Shaikh”) and the Kuwait Oil Company
Limited a Company registered in Great Britain under the Companies Act, 1929, its
successors and assigns (hereinafter called “the Company”).
Article L—-Ihe Shaikh hereby grants to the Company the exclusive right to
explore search drill for produce and win natural gas asphalt ozokerite crude
petroleum and their products and cognate substances (hereinafter referred to as
“ petroleum ”) within the State of Kuwait including all islands and territorial
wateis appeitaining to Kuwait as shown generally on the map annexed hereto, :,i: ' the
exclusive ownership of all petroleum produced and won by the Company within
the State of Kuwait the right to refine transport sell for use within the State of
Kuwait or for export and export or otherwise deal with or dispose of any and all
such petroleum and the right to do all things necessary for the purposes of those
operations. The Company undertakes however that it will not carry on any of its
operations within areas occupied by or devoted to the purposes of mosques sacred
buildings or graveyards or carry on any of its operations except the sale of
petroleum housing of staff and employees and administrative work within the
present town wall of Kuwait.
The period of this Agreement shall be 75 years from the date of signature.
Article 2.—(A) Within nine months from the date of signature of this Agreement
the Company shall commence geological exploration.
(B) The Company shall drill for petroleum to the following total aggregate
depths and within the following periods of time at such and so many places as the
Company may decide :—
(i) 4,000 feet prior to the 4th anniversary of the date of signature of this
Agreement.
(ii) 12,000 feet prior to the 10th anniversary of the date of signature of this
Agreement.
(iii) 30,000 feet prior to the 20th anniversary of the date of signature of this
Agreement.
(C) The Company shall conduct its operations in a workmanlike manner and by
appropriate scientific methods and shall take all reasonable measures to prevent the
ingress of water to any petroleum-bearing strata and shall duly close any unpro
ductive holes drilled by it and subsequently abandoned. The Company shall keep
the Shaikh and his London Representative informed generally as to the progress
and result of its drilling operations but such information shall be treated as
confidential.
(Signed)
(Signature of Shaikh of Kuwait.)
(Signed) H. R. P. Dickson, Lt.-Col.
* Xot reproduced.

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Content

The file concerns the negotiations concerning the signing of the commercial agreement between the Shaikh of Koweit [Kuwait], Shaikh Ahmed al-Jabir as-Subah [Aḥmad al-Jābir Āl Ṣabāḥ] and the Kuwait Oil Company in 1934. The Kuwait Oil Company was 50-50 owned by the Anglo-Persian Oil Company (APOC) and the Gulf Oil Company of Pennsylvania. The Shaikh of Kuwait was precluded from signing an agreement without the permission of the His Majesty's Government ( HMG Her or His Majesty’s Government in London. ).

The file consists of minutes and correspondence from 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 other main correspondents are the Foreign Office; Traders Limited; the Kuwait Oil Company; 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. , Kuwait (Lieutenant-Colonel Harold Richard Patrick Dickson).

The file covers: negotiations over an oil concession between the Shaikh of Kuwait and Traders Limited; the involvement of Lord Lloyd [George Ambrose Lloyd, 1st Baron Lloyd]: in particular, Lloyd's contention that the concession should go to a wholly British-owned company, without any American involvement; enquiries into the composition of Traders Limited (e.g. folios 281-283, 273-276); company information about the concession supplied to 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. by Sir Henry Strakosch, including Strakosch's view that Traders Limited were not likely to prove as desirable a concessionaire as the Anglo-Persian Oil Company and the Gulf Oil Company of Pennsylvania (folios 197-207); 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. approval of the awarding of the concession to the Kuwait Oil Company, and correspondence with both companies; correspondence between British Government officials and the Shaikh of Kuwait, expressing the British Government's disapproval of the Shaikh's dealings with Traders Limited (especially folios 137-154); the signing of the commercial agreement on 23 December 1934; minutes of discussions 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. between British Government officials and representatives of the Kuwait Oil Company, and Traders Limited; copies of the political and commercial agreements (folios 111-118); the suspicions of 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 that the Anglo-Persian Oil Company were the 'hidden hand' behind Traders Limited (folios 62-69); copy of the Kuwait oil concession document supplied to 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. by the Kuwait Oil Company, including two maps (folios 57-58) that accompanied the concession, with related correspondence (folios 38-58); discussion of what the British Government's attitude to the Shaikh of Kuwait should be in future, in view of the Shaikh's 'disregard' of his treaty obligations toward the British (e.g. folio 23); and the threat of legal action by Traders Limited against the decision to award the concession to the Kuwait Oil Company (folios 14-17).

The file also contains one document of a slightly earlier date than the stated date range: a copy of the political agreement between the British Government and the Kuwait Oil Company dated 5 March 1934 (folios 324-325).

The Arabic language content of the file consists of Arabic equivalents of place names in English on the map of Kuwait on folio 58.

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 volume (390 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 inside back cover with 392; 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 30/91(2) 'Koweit Oil Concession: Agreement between the Shaikh of Kuwait and the Kuwait Oil Coy.' [‎114r] (232/788), British Library: India Office Records and Private Papers, IOR/L/PS/12/3812, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100056562824.0x000021> [accessed 25 April 2024]

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