"الملف 86/2 VI (C46) نفط البحرين" [و‎‎١‎٧‎١] (٤٢٢/٣٥٣)

Article 5.
Directly after the date on which this agreement comes into force the
Company shall proceed with its plans together with other preparations for
geological work and arrangements for work, so that it may make use of the cold
weather which enables it to undertake effectual field work, and to carry out the
clerical work and make reports, &c., during the hot season. In any case, the field
work should not be delayed more than the end of September 1933. Such work
should be energetically and strenuously continued till the beginning of digging
operations or up to the end of the agreement.
Article 6.
Within ninety days from the date on which digging operations start the
Company shall leave or surrender to the Government the places (areas) of the
allowed zone which the Company may decide are not needed for further work or
for use in another form or manner in connexion with this project. The Company
should also surrender to the Government from time to time during the period
of this agreement other areas which the Company may decide are no longer
required for inspection or investigation and for use for any purpose which may
have connexion with this scheme. All the places (areas) which are gi\en up by
the Company will be released from the restrictions and conditions of this
agreement, but the Company will have the permanent right to employ those aieas
for the purposes of transport and communications during the duration of this
agreement, provided that this practice should have a slight connexion only with
the other form or method in which these parts (areas) surrendered by the
Company can be used.
Article /.
The Company should begin with the operations of digging as soon as it (the
Company) discovers the place suitable for the same, and, in any case, if the
Company fails to proceed with the operations of digging within a peiiod of three
years as from the end of September 1933 (subject to the observation of the
provisions of article 24 of this agreement), the Government may then terminate
this agreement. Whenever the Company begins with the operations of digging,
it should persevere with energy until it discovers oil in commercial quantities or
until it terminates this agreement, and if the Company fails to give notice
regarding the date on which oil is discovered, then the date to be fixed for this
purpose will be counted as from the date on which the Company completed the
dkeW of one well or wells, examines them and discovers that they can supply
not less than 2,000 tons of crude oil daily and for a period of thirty days
consecutively in conformity with the reliable practice observed m first-class oil
fields. The operations of digging include the ordering of tools and othei machines
and their shipment to Saudi Arabia, and also include the preparation of roads
camps, buildings, fittings, transport, communications and fitting machines and
other means for well-digging.
Article 8.
Immediately after the discovery of oil in commercial quantities the Company
should give the Government the loan already agreed upon, and after one year
another loan should be given to the Government. The date of paying the first
loan will be the date on which oil is discovered m commercial quantities as
provided for in this agreement, and the date of offering the second oan will be
after one year from that date, and in both cases the Government will grant the
Company I period of sixty days' delay so as to enable it to pay the loan during
that period. _
Article 9.
As it has been agreed that the annual rent will be paid up to the date of
discovering oil in commercial quantities, and as it has also been agreed tha the
annual reSt should be paid in advance, therefore it is possible that the last
payment of the annual rent before the date of discovering 0| l ln commercia
quantities mav include a certain period after the date on which the oil is
discovered, and if this extra period is equal to one-fifth of the year or more, the
amount proportionate to that period will be considered as a loan due by the
G-overnment.
[879 q—5]
b 2