Coll 30/124A 'Koweit (Neutral Zone) Oil Concession: Negotiations with Petroleum Concessions Ltd.' [‎329r] (657/883)

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and possibly Socony Vacuum may enter the field as individual
American competitors of P.C.L.’ Gulf Oil Corporation may well also
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compete although they (and likewise the A.I.O.C.) are likely to be
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restrained by the consideration that success in the Neutral Zone
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would inevitably carry with it a high royalty rate which in all
probability would then also have to be accepted by Kttweit Oil Company
in Kuweit proper*
5» In view of possibility that P*C. L. may be unsuccessful in
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obtaining a share of the^Neutral Zone rights^an informal suggestion
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^recently made by the Burraah Oil Company has been encouraged by H # M*G$
Bweaath Oji Cainrawy are a British concern of international repute and
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well equipped both financially and technically. They are independent
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of A.I.O.C. and Shell in their production and marketing policy out
side India and Burma, and are*^in no way involved in the I«,F*C. group
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or Red Line Agreement; They may be interested in the possibility of
obtaining ar/oil concession in the Kprweit Neutral Zone and would wel-
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come the opportunity of sending a representative to open negotiations
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with the Sheikh if this is acceptable to him*
6. I Both P.C.L. and i£a* Bujarnah 0^1 CBrornwry would have the full
support of II.M.C. in their negotiations with the Sheikh as beirjg
British companie^of high standing and experience. With two British
companie^in the running 'the prospect of secufang British^ partici-
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pation will be extended, and we would hope that one or other of these j
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two companies will be successful in obtaining the grant of the
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Sheikbi’s rights in the N6t*±ral Zone and will then be' able to come to
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an arrangement with Caltex for a merger between the rights of the
Sheikh and Ibn Saud,
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?♦ Please inform the Sheikh of the r*sasaa& Oii Cempeqaar's interest and
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of their desire to send a representative to open negotiations if this
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meets with the Sheikh's approval. We assume that the Sh^ikh^will not
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wish to raise" any objections having/regard. t"5 feta statemei-rn th*/he
was now prepared to consider bids from all comers^
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o. We are anxious to avoid misunderstanding on the part of P.C.L.
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representatives and you may therefore if you think fit inform them
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that the Burmah Oil Company may be entering the fieldthat if they
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do it will be on their awnfinT+-i®-}-it»o.
not be
on their ownLitiative; and (< tLt the^ill
/ favoured