'File 39/2 (1 B/8) Effect of abrogation of APOC concession by Persian Government on oil market in Bahrain' [‎33v] (66/80)

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(V) To secure the Government against any loss which might result from
fluctuations in the value of English currency, the parties have agreed as
follows :—
(a) If, at any time, the price of gold in London exceeds six pounds sterling
per ounce (ounce troy) the payments to be made by the Company in
accordance with the present Agreement (with the exception of sums
due to the Government under sub-clause (I) (b) and clause (III) (a)
and (b) of this article and sub-clause (I) {a) of article 23) shall be
increased by one thousand four hundred and fortieth part CnsVo ’ f° r
each penny of increase of the price of gold above six pounds sterling
(£6) per ounce (ounce troy) on the date due of the payments.
(b) If, at any time, the Government considers that gold has ceased to be the
general basis of values and that the payments above mentioned no
longer give it the security which is intended by the parties, the parties
shall come to an agreement as to a modification of the nature of the
security above mentioned or, in default of such an arrangement, shall
submit the question to the Arbitration Court (article 22), which shall
decide whether the security provided in sub-clause (a) above ought
to be altered and, if so, shall settle the provisions to be substituted
therefor and shall fix the period to which such provisions shall apply.
(VI) In case of a delay, beyond the dates fixed in the present Agreement,
which might be made by the Company in the payment of sums due by it to the
Government, interest at five per cent/ (5 per cent.) per annum shall be paid for
the period of delay.
Article 11 .
(I) The Company shall be completely exempt, for its operations in Persia, for
the first thirty years, from any taxation, present or future, of the State and of
local authorities; in consideration therefor the following payments shall be made
to the Government:—-
(a) During the first fifteen years of this Concession, on the 28th February of
each year and for the first time on the 28th February, 1934, nine pence
for each of the first six million (6,000,000) tons of petroleum, on which
the royalty provided for in article 10 (I) {a) is payable for the
preceding calendar (Christian) year, and six pence for each ton in
excess of the figure of six million (6,000,000) tons above defined.
{b) The Company guarantees that the amount paid under the preceding sub
clause shall never be less than two hundred and twenty-five thousand
pounds sterling (£225,000).
(c) During the fifteen years following, one shilling for each of the first
six million (6,000,000) tons of petroleum, on which the royalty
provided for in article 10 (I) {a) is payable for the preceding calendar
year, and nine pence for each ton in excess of the figure of 6,000,000
tons above defined.
(d) The Company guarantees that the amount paid under the preceding
sub-clause (c) shall never be less than three hundred thousand pounds
sterling (£300,000).
Before the year 1963, the parties shall come to an agreement as to the
amounts of the annual payments to be made, in consideration of the complete
exemption of the Company for its operations in Persia from any taxation of the
State and of local authorities, during the second period of thirty years extending
until the 31st December, 1993.
Article 12 .
(u) The Company, for its operations in Persia in accordance with the present
Agreement, shall employ all means customary and proper, to ensure economy in
and good returns from its operations, to preserve the deposits of petroleum and
to exploit its Concession by methods in accordance with the latest scientific
progress.
{b) If, within the territory of the Concession, there exist other mineral
substances than petroleum or woods and forests belonging to the Government, the