'File 14/1 III Oil concession in Muscat' [‎241r] (486/594)

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27. A further provision is that the Standard Oil Company of California
shall have the right to recover by means of deductions from one-half of the
royalties due to the Government" the amount of two loans totalling £50 000 gold
received by the Saudi Arabian Government from the company. g
/*:> 28. On the same date as the conclusion of this modified agreement letters
T/ere exchanged by the company and the Saudi Arabian Government defining the
company’s preference rights in regard to (a) “the balance of Eastern Saudi
Arabia” referred to m paragraph 26 above, and (b) the Koweit Neutral Zone (see
paragraph 7 above). The effect of these preference rights in (a) is to entitle the
company to acquire an oil concession on terms equal to those which may be offered
to the Saudi Arabian Government by another company. If the Standard Oil
Company of California elect not to exercise their right, the Saudi Arabian
Government is free to accept the other company’s offer. Otherwise, the Standard
Oil Company of California’s preference right shall continue at least so long as the
provisions of the special agreement remain in force.
The Yemen.
29. No concession has so far been obtained in this territory owing to the
attitude of the Imam Yahya, who opposes the exploitation of his country by foreign
interests. The Trench interests in Petroleum Concessions (Limited) have, how
ever, been successful in inducing the Imam to permit two geologists to visit the
Yemen for a period of six months.
Muscat and Oman.
30. Two concessions(’) have been obtained from the Sultan of Muscat and
Oman by Petroleum Concessions (Limited), one m respect of Muscat and Oma
except the district of Dhofar and the other m respect of S e“ nty-
cial agreements are dated the 24th June, 1937, and run ding- associated in
five years. The Sultan at first showed himself averse from being associate^m
any way with any political agreement between is . , b "o u u an durino- his visit
company. This question was however, w ^ be
to this country in April of this year, and the Sultan in the
associated with such an agreement m a mo i • . h eastern
31. An aerial exploration which it ^ hoped to carry om of
portion of the Aden Protectorate will probably include the P
Muscat and Oman.
Refinery Agreement with Petroleum His Majesty’s
32. A general Refinery Agreement wa ^ ^ 5th February, 1937.
Government and Petroleum Concession ( ^ ' ro q uct ion of crude oil m the
Briefly, the agreement provides that ^old oil concessions in the Persian
areas over which the company ho , J nu ^ I1 the company shall erect, on a
Gulf area reaches a total of 500,00 0 • ^ ^th a total capacity of not less t an
site to be agreed, a refinery or refinene i ^ own to the satisfaction of His
250,000 tons per annum, unless r eclu d e d by commercial consideratiom .
Majesty’s Government that this w0l \ j^ation of the question of the re n ^
The agreement also provides for a i production exceeding 1 nu io
capacity in the event of the total annual pio
per annum.
Pre-emption of Oil in the Event of an Em J between His Majesty s
33 The political agreements enterJmto^w conce = secured
ment and Petroleum Concessions^ . ^ q Ras-al-Khauna ’ 0 existence
by the company in Qatar, ^“^fnttional emergency or^^bty’s Govern-
(dia, that in the event of a st ^ the sole judge) H under the
of which His Majesty’s Government sh^ll 6 of crude odobtamed'i
nent shall have the sole right of preei p ^ Ma;je ty s Goveinme have
oil ebfi products rneic^
S Gpvernmem S. _ tion of ^ cr ude o' 1 ^ent have also
-- ““““ ““'r T-^products thereof. HAnvrefining capacity it may have
nncessions and of all the P ru e ex tent of any rem g r
he right to require the company , • a t.ArritorV.
1 for his Asiatic territory,
. be granted by the Sultan later
( s ) A separate concession m y
Gwadur.