Coll 30/217(1) 'Trans-Arabian Pipe Line (Persian Gulf - to Mediterranean)' [‎11r] (21/307)

- 28.12.1946.
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Two oil pipelines linking the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. with
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the Mediterranean, at an estimated cost t>f •£~3a r QGO*000 /?<„
are projected by wo oil agreements which are bow con-
firmed by the Standard Gil Company of hew Jersey.
The first, with the Anglo-Iranian Oil Company
^in v/hich the British Government is the majority share
holder) provides for prior investigation of the* possibi
lity of constructing a pipeline from the Gulf to" the X,
eastern mediterranean, to be owned in part by the Standard
Gil Company.
The second arrangement, not related to the first,
contemplates acquisition by the Standard Oil Company of
new Jersey of about 30 percent interest in the Arabian-
Amerlean Gil Company which ov/ns oil-producing properties
in the eastern part ol Saudi Arabia and is jointly ov/ned
by the Standard Oil Company of California and the Texas
Oil Company.
One of the pipelines is expected to be a 26-inch
line 1,200 miles long from the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. to Haifa,
saving a long voyage by tankers through the Red Sea and
Cue Suei Canal. middle Cast is a great oil supplier,
particularly for Britain and Europe, and renutable oil
experts are convinced that Arabia will, within relatively
few years, be_ the biggest oil producer, not merely in the
Riddle East, but probably in the ‘whole of the world. The
pipeline will then be one of the most important in the
world.
The Standard Oil Company 1 s statement said that the
agreement provided for prior investigation of the possi
bility of construction of a pipeline to be owned in part
by the New Jersey company from the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. to the
eastern Mediterranean. It is expected that under such a
contract tne volume of the New Jersey company^ crude oil
purchases would increase gradually over the period of the
agreement to meet the expected increase in "world demand
for petroleum products.
The company also confirmed the fact of a preliminary
agreement on_a^separate proposed transaction looking towards
increased utilization of middle East crude oil by the New
Jersey company affiliates.
This is under discussion with the Arabian American
Oil company but is not related to the negotiation with the
Anglo-Iranian Company.
# -J-fre agreement with the Arabian American Company
would involve acquisition of approximately 1 30 per cent
incerest in the latter company whose producing properties
are in the eastern portion of Saudi Arabia.
,. , J _, - he statement declared that it is also contemplated
that tne Standard Oil Company of New Jersey will share the
cost of an additional projected pipeline from the Persian
Gulf to an eastern mediterranean terminal in proportion to
its interest in the Arabian American Oil Company'.
chile the agreement in principle has been reached
with the Arabian American Oil Company, its. final conclusion
is contingent upon the satisfactory completion of the surveys
and discussions now in progress.
The Standard
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