Coll 30/124A 'Koweit (Neutral Zone) Oil Concession: Negotiations with Petroleum Concessions Ltd.' [‎199r] (397/883)

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4. Coming now to my Company’s offer, your Highness informed
me that both P.C.L. and Gulf have offered to pay £.50,000
sterling annually until oil is found in commercial quantities,
and we agreed that it would be easier for your Highness to
compare different offers if my Company offered the same amount
annually. I therefore now do so.
5. Then as to a lump siua payment within thirty days of
signature of an agreement between your Highness and iny Company,
you informed me that P.C.L. had offered £.200,000 sterling and
that Gulf had offered the equivalent of £.250,000 sterling.
1 decided to offer the sum which I had in mind before hearing
of these other offers, namely the equivalent of fifty lakhs One lakh is equal to one hundred thousand rupees of
rupees Indian silver coin also widely used in the Persian Gulf. £.375,000, and I now confirm this in writing.
6. To summarise: The Burraah Oil Company Limited offers
for the Kuwait share of the oil rights in the Neutral Zone
between Kuwait and 3audi Arabia:
(i) £.375,000 sterling to be paid within thirty days
of signature by my Company of an agreement with
your Highness,
(ii) £.50,000 sterling to be paid on the first and each
subsequent anniversary of the signature by my
Company of an agreement with your Highness, until
oil is found in commercial quantities,
(iii) Drilling obligations and other terms such as are
in the Kuwait Oil Company’s Agreement to be
modified as necessary in accordance with paragraph
3 above, and after full discussion with your
Highness.
7. I thank your Highness for agreeing to inform me of the
amount of any higher offer which may be made, and for your
promise that you will in no case give the concession to any
other company without first giving my Company the opportunity
of meeting the highest offer which you may at any time receive.
8. I have already thanked your Highness on behalf of my
Company for your very courteous treatment of its representative,
and I now thank you personally for your kindness to me.