Coll 30/216 'Development of oil supplies in the Middle East.' [‎20v] (40/131)

18. Drilling near the Sea of Marmara rendered only negative results, but
the Maden Tetkik ve Arma Enstitiisu (M.T.A., the Institute of Mineral Research)
has achieved a slight measure of success at Raman Dag, 10 miles south oi Beshiri
in the Siirt vilayet, in south-eastern Turkey. There are some geological structures
there which are superficially promising, and one of the wells sunk by the M.T.A.
has produced some oil. It is possible that oil may be found in other test wells in
thf* neighbourhood, but the prospects of finding a reasonably large field cannot be j
said to be very encouraging. 1 .
19. The Turkish press has expressed the view that production from the
Raman Dag field will be sufficient to meet home requirements, but this is open to
doubt.
VI.— Cyprus.
20. Petroleum Development (Cyprus), Ltd., an associated company of the
Iraq Petroleum Company, has been granted several prospecting licences for
Cyprus, but the exploration work so far carried out has not been encouraging.
Owing to the war operations have been suspended.
VII.— Palestine.
21. Petroleum Development (Palestine), Ltd., an associated company of the
Iraq Petroleum Co. (with the same shareholding interests), has a capital of
£122,100. It holds 29 licences under the Palestine Mining Law covering in all
5,268 square miles. The survey obligations under the licences were all fulfilled
and arrangements to begin drilling had been made before war broke out. Owing,
however, to war conditions, the company could not obtain the necessary drilling
equipment, and the Palestine Government have agreed to the postponement of
drilling until after the war or until materials can be obtained, whichever is the
earlier.
22. Haifa is now of great importance as the Mediterranean terminal of the
southern branch of the I.P.C. pipeline from Kirkuk. There is a large tank farm
and there are ample loading facilities for tankers.
23. In addition, the large refinery operated by Consolidated Refineries, Ltd.
(in which all the shares are held jointly by the A.I.O.C. and the Anglo-Saxon
Petroleum Co., a Shell subsidiary) on the outskirts of Haifa treats crude oil from
the I.P.C. field at Kirkuk; its capacity is being increased from 2,800,000 to
3,800.000 tons a year. The Shell and a number of other concerns have storage
installations at Haifa.
Will.—Syria.
24. The Syria Petroleum Company, Ltd., an associated company of the Iraq
Petroleum Company, has a capital of £1,250,000. It holds a concession from
the Syrian Government dated the 26th February, 1938, which was ratified by the
French High Commissioner on the 25th March, 1940.
25. The concession area covers the whole of the Syrian Republic north of
the parallel running through Damascus (36° 18'); it is approximately
63,000 square miles in extent. The concession provides for “ dead rent ” payments
beginning at £15,000 (gold) per annum and rising to £80,000 (gold) per annum
over a period of 15 years. Should oil be produced in sufficient quantities, royalties
will take the place of these “ dead rent ” payments. At the expiration of the
15-year period, the company must either begin to export oil or abandon the
concession.
26. Drilling operations were started in 1939 and continued until 1941, when
the military situation in Syria brought the work to a standstill. Most of the
drilling equipment was destroyed by the British military forces in order to deny
its use to the enemy. The Syrian Government have granted the company a
moratorium on drilling obligations which is to last until two years after the end
of the war with Germany.
27. The results of the small amount of test-drilling carried out were
•inconclusive, but encouraging.
IX.— Lebanon.
28. The Syria Petroleum ,Co. holds prospecting licences covering over
193 square miles near the Tripoli terminal of the I.P.C. pipe-line. By agreement
with the local authorities, the carrying out of the obligations under the terms of
the licences has been postponed until the necessary drilling and other equipment
can be obtained.