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Coll 30/123(3) 'Bahrein (Unallotted Zone) Oil Concession: Negotiations with the Bahrain Petroleum Company.' [‎97r] (193/1108)

The record is made up of 1 file (547 folios). It was created in 9 Jan 1939-6 Jun 1947. 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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M)
Following for Ballantyne Cliffords Inn Fleet St*, London
from Hanna. • • .
Refer to the last portion of your cable August 15th,
Following cable was despatched Anderson October 23rd
’’Have been advised by Ballantyne that 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. sees
no objection to company informing Sheikh that due to
"^rcunstances of war it considers itself released from obligation
uo continue drilling in exploratory area during present emergency
and that for reasons of force majeure it must invoke article 8
of Deed June 19th, 19L0 and suspend drilling until such time as
force majeure no longer exists. He states further that if any
doubt is felt about stopping voluntarily military or other
paramount local authority will if approached give you written
orders to suspend operations. If you agree suggest you proceed
on basis of advising Bahrein Government that drilling in
exploratory area will be suspended in accordance with article 8
forwarding copies of orders to this office for safekeeping. If
necessary to approach military or paramount local authority advise
before doing'! "T*
Anderson advises to-day.
"Have had preliminary discussion with authority
on this subject and he states he would deplore action suggested
by you and intimated he would advise Sheikh against accepting^ ,
He believes this would be bad move from psychological viewpoint
and would arouse Sheikh's suspicion that he night stand to lose
minimum royalty, such suspicion would of course be absurd but
despite my assurance local authority persisted in his viewpoint.
Main objection seems to be that force majeure is an ugly word and
Sheikh would not like it. He does not recommend adoption of
alternative suggestion your 970 .since technically military have
no authority in this regard until they actually take over control
of Government. Understand tiiat this alternative was adopted by
nearby concession and local Sheikh very reluctant to recognise
authority of military to issue such orders. Local authority
suggests the following course of action which he is confident
would be acceptable, namely that company request release from
obligations under article 5 of Deed dated June 19th, 19L0 due to
present existing circumstances. Use of the word force majeure
and mention of article 8 to beowolded. Only objection I can
see to this is that presumably company would not obtain .any
extension of period of lease, ^lease advise action you wish
taken and quote verbatim if possible statement you wish handed ^ fl
local authority. fl _ °

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Content

The file title has been amended from 'Petroleum Concessions Ltd' to read 'the Bahrain Petroleum Company'.

The file concerns negotiations between the Government of Bahrain and the Bahrain Petroleum Company (BAPCO), which resulted in the Company receiving exclusive oil concession rights over the Bahrain Unallotted Area (consisting of the offshore waters around the main island of Bahrain and the Hawar Islands), negotiations over the drafting of the concession agreements, and the progress of operations in the area. The file contains a large amount of correspondence from representatives of BAPCO.

The papers include: British Government approval for the preferred option of the Ruler of Bahrain, Shaikh Sir Hamad bin Isa Alkhalifah [Ḥamad bin ‘Īsá Āl Khalīfah], to give the whole of the Unallotted Area to BAPCO rather than dividing it between BAPCO and Petroleum Concessions Limited (PCL), 1939; drafts and signed copies of (1) the political agreement relating to the Bahrain oil concessions between HM Government and BAPCO, and (2) the agreement between the Ruler of Bahrain and BAPCO supplementing BAPCO's original lease, 1939-40; comments on the drafts of the agreements and the progress of negotiations 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 and the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. ; comments on the drafts of the agreements by the Foreign Office, Petroleum Department, and the Admiralty (including the issue of territorial waters); correspondence and agreement concerning the temporary transfer of BAPCO geological plans and other records out of Bahrain as a result of wartime conditions, 1941; correspondence concerning an agreed moratorium on all operations by BAPCO in the Additional (previously Unallotted) Area as a result of wartime conditions, 1941-43; correspondence concerning the probable length of life of the Bahrain oilfield, 1946; and papers concerning the resumption of full operations by the Company, 1946-47, including a four-year extension to the BAPCO lease as a result of the moratorium.

The Arabic language content of the papers consists of drafts and signed copies of the oil agreement in both English and Arabic, and correspondence between British officials and the Ruler of Bahrain, with English translations.

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 (547 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 548; 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. A previous foliation sequence, which is also circled, has been superseded and therefore crossed out.

Written in
English and Arabic in Latin and Arabic script
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Coll 30/123(3) 'Bahrein (Unallotted Zone) Oil Concession: Negotiations with the Bahrain Petroleum Company.' [‎97r] (193/1108), British Library: India Office Records and Private Papers, IOR/L/PS/12/3855, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100074498391.0x0000c4> [accessed 19 April 2024]

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