'File 39/2 (1 B/8) Effect of abrogation of APOC concession by Persian Government on oil market in Bahrain' [‎33r] (65/80)

Article 9.
The Company shall immediately make its arrangements to proceed with its
operations in the province of Kermanshah through a subsidiary company with
u view to producing and refining petroleum there.
Article 10.
(I) The sums to be paid to the Government by the Company in accordance
with this Agreement (besides those provided in other articles) are fixed as
follows :—
(a) An annual royalty, beginning with the 1st January, 1933, of four shillings
per ton of petroleum sold for consumption in Persia or exported from
Persia
(b) Payment of a sum equal to twenty per cent. (20 per cent.) of the distribu
tion to the ordinary stockholders of the Anglo-Persian Oil Company
(Limited), in excess of the sum of six hundred and ^seventy-one
thousand two hundred and fifty pounds sterling (£671,250) whether
that distribution be made as dividends for any one year or whether
it relates to the reserves of that Company, exceeding the reserves
which, according to its books, existed on the 31st December, 1932.
(c) The total'amount to be paid by the Company for each calendar (Christian)
year under sub-clauses (ft) and (b) shall never be less than seven
hundred and fifty thousand pounds sterling (£750,000).
(II) Payments by the Company under this article shall be made as
follows :—
(ft) On the 31st March, the 30th June, the 30th September and the
31st December of each year, on each occasion one hundred and eighty-
seven thousand five hundred pounds sterling (£187,500). (The
payment relating to the 31st March, 1933, shall be made immediately
after the ratification of the present Agreement.)
(b) On the 28th February, 1934, and thereafter on the same date m each year,
the amount of the tonnage royalty for the previous year provided for
in sub-clause (I) (ft) less the sum of seven hundred and fifty thousand
pounds sterling (£750,000), already paid under sub-clause (II) (ft).
(c) Any sums due to the Government under sub-clause (I) (b) of this article
shall be paid simultaneously with any distributions to the ordinary
stockholders.
(Ill) On the expiration of the Concession, as well as in the case of surrender
by the Company under article 25, the Company shall pay to the Government a
sum equal to twenty per cent. (20 per cent.) of—
(ft)
w
le surplus difference between the amount of the reserves (General
Reserve) of the Anglo-Persian Oil Company (Limited) at the date
of the expiration of the Concession or of its surrender, and the amount
of the same reserves at the 31st December, 1932.
ie surplus difference between the balance carried forward by the
Anglo-Persian Oil Company (Limited) at the date of the expiration
of the Concession or of its surrender and the balance carried forward
by that Company at the 31st December, 1932. Any payment due to
the Government under this clause shall be made within a period of
one month from the date of the general meeting of the Company,
following the expiration or the surrender of the Concession.
(IV) The Government shall have the right to check the returns relating to
sub-clause (I) (ft) which shall be made to it at latest on the 28th February for the
preceding year.