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Coll 30/123 'Bahrain (Unallotted Zone) Oil Concession: Negotiations with Petroleum Concessions Ltd.' [‎81v] (162/801)

The record is made up of 1 file (398 folios). It was created in 24 Oct 1935-18 May 1938. 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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■I
HBHHR
4
TTie Company stall have the right to prospect for, collect and use free anywhere
within the leased area, but not to export or sell, stone, gypsum, salt, sulphur, clay,
wood, and water, whether from rivers or springs, for the purpose of their work.
The selection of routes and sites for such works and the course of the pipe-line
shall rest with the Company.
Article II.
The Shaikh grants gratuitously to the Company all uncultivated land belonging
to him which may be needed by the Company for their operations.
In the lands so granted the Company shall for the period of their Agreement
enjoy full proprietary rights.
The Shaikh also recognises that the Company has the right to acquire all and
any other lands and buildings necessary for the said purpose with the consent of the
proprietors on such conditions as may be arranged between the Company and the
said proprietors without their being allowed to-make demands of a nature to surcharge
the prices ordinarily current lor lands and buildings situated in their respective
localities.
At the expiry of the Agreement the ground and all immovable property left by
the Company shall be handed back to the Sheikh.
It is, however, understood that within the leased area the Company shall be
entitled to acquire only such land as is necessary for their pipe-lines, re fineries^ offices,
and other works and that save in so far as it is necessary in order to enable their pipe
lines and railways to pass freely to their destination they shall not occupy any land
outside the leased area which might otherwise be leased for the production of oil to
a third party, unless they can satisfy the Shaikh that no other land suitable for their
purpose is available.
Article III.
In consideration of the grant of this lease, the Company undertake to pay to the
Shaikh within tiO days after its grant, the sum of Rupees Indian silver coin also widely used in the Persian Gulf. 10,000 and the further sum
of Rupees Indian silver coin also widely used in the Persian Gulf. 10,000 on each anniversary of the grant, subject to the “ delay ” exception
mentioned in Article V, for live years, or until, in accordance with Article IX, the
Company shall have declared that oil has been found in commercially exploitable
quantities.
Article IV.
All lands granted by this Agreement to the Company or that may he acquired by
the Company in the manner provided for in Article II of this lease as also all products
exported shall be free of all imposts and taxes during the tenure of the present
Concession.
All material and apparatus of every kind necessary for the exploration, working
and development of the deposit and for the construction and development of the pipe
lines, including also all the works specified in the first paragraph of Article 1 hereof
and office requirements, but not including the personal requirements of employees,
shall enter the said territories free of all taxes and Custom House duties.
This privilege shall continue in force until two years after the date upon which
the Company shall have declared that oil has been found in commercially exploitable,
quantities, or for a term of 10 years, whichever is the longer.
Article F.
The Shaikh undertakes to give all the protection in his power to the Compativ
and to their staff and labourers in any part of his territory from thefts, highway
robbery, assault, &c. Similarly the Shaikh undertakes to protect all the property
of the Company and of its employees which may be exposed to wilful damage or to
possible loss by theft.
If the Company’s work is delayed by such events as are mentioned in this Article
then the period of such delay shall be added to the period for which this lease is
granted, and either (a) to the period before the expiration which the Company shall
give the declaration mentioned in Articles IX and X, if the delay occurs prior to such
declaration, in which event the annual payment of Rupees Indian silver coin also widely used in the Persian Gulf. 10,000 shall be remitted
for the period of the delay or {b) to the period for which the royalty mentioned in
Article VIII shall hold good, if the delay occurs subsequently to the declaration
mentioned in Articles IX and X in which event the fixed rent of Rupees Indian silver coin also widely used in the Persian Gulf. 30,000 shall

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Content

The file concerns negotiations with Petroleum Concessions Limited (PCL) over oil concession rights in the Bahrain Unallotted Area (also referred to as the Additional Area), i.e. those parts of Bahrain territory not forming part of the concession awarded to the Bahrain Petroleum Company (BAPCO) in 1925. The negotiations principally concerned Muharraq Island and an area around the other islands to the north of Bahrain, and the sea area to the east of Bahrain, including Fasht Dibal [Fasht ad Dībal] and the Hawar Islands.

The papers include: maps of Bahrain and proposed concession areas; draft PCL concession, 1936 (folios 361-374); minutes of meetings 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. ; negotiations with BAPCO over a counter-offer for the Unallotted area; the attitude of Shaikh Sir Hamad bin Isa al-Khalifah [Ḥamad bin ‘Īsá Āl Khalīfah], Ruler of Bahrain, to the negotiations, including correspondence from the Adviser to the Government of Bahrain, Charles Dalrymple Belgrave; discussions over the status of the Hawar Islands; Admiralty, Colonial Office, and Foreign Office papers concerning territorial waters, and submarine boring for oil (folios 221-225); Petroleum Department letter concerning the financial implications of the rival bids (folios 196-197); proposals to split the Additional Area between the two companies, including Belgrave's view that it would be of greater benefit to the Shaikh to have two companies working in Bahrain (folio 161); the role in the negotiations of Frank Holmes; the Ruler of Bahrain's wish to postpone discussion of the concession for a year on account of a dispute over the status of Zubarah 18th-century town located 105 km from Doha. , May 1937 (folios 124, 112); a suggestion by 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. , Bahrain that the Zubarah 18th-century town located 105 km from Doha. problem could be solved by allowing the shaikhs of Bahrain to hold Zubarah 18th-century town located 105 km from Doha. as their personal property (folio 102); draft PCL concession, 1938, and copy of the 1925 oil concession (folios 58-85); and suggestions of British Government support for the PCL bid (folios 9-15).

The Arabic language content of the papers consists of the bilingual Arabic and English text of the draft concession agreement of 1938, and correspondence (with English translation) from the Ruler of Bahrain.

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 file (398 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 (used for referencing) commences at the inside front cover with 1, and terminates at the last folio with 400; 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.

Written in
English and Arabic in Latin and Arabic script
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Coll 30/123 'Bahrain (Unallotted Zone) Oil Concession: Negotiations with Petroleum Concessions Ltd.' [‎81v] (162/801), British Library: India Office Records and Private Papers, IOR/L/PS/12/3852, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100070084975.0x0000a5> [accessed 28 March 2024]

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