Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [61v] (122/1153)
The record is made up of 1 file (574 folios). It was created in 8 Dec 1923-11 Jul 1945. It was written in English. 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. .
Transcription
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2
8. The consideration paid and to be paid for these extensions of the
company’s area of operations appears very liberal. £140,000 gold is payable at
once; thereafter an annual rental of £20,000 is to be paid; and whenever oil in
commercial quantities is discovered in the additional areas a further sum oi
£100,000 gold will be paid. From July 1940 onwards, until oil is discovered in
the new areas, 1,300,000 gallons of gasoline and 100,000 gallons of kerosene will be
presented to the Saudi Arabian Government, and after such a discovery is made
the amount of gasoline will be increased by 1 million gallons. I have not heard
what actual sum in cash has passed; it is clear from the last words of article 4
that the rental due under the 1933 agreements had been overpaid, and I should not
be surprised to learn that advances have been made on account of the increased
sums which will be payable in future.
9. I am sending copies of this despatch and the enclosure to His Majesty’s
Ambassador at Bagdad, and to the Hon. 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 at Bushire. ’
I have, &c.
A. C. TROTT.
Enclosure.
THIS agreement is made between his Excellency Sheikh Abdulla Sulaiman-
al-Hamdan, Minister of Finance of Saudi Arabia, acting on behalf of the Saudi
Arab Government (hereinafter referred to as the k ‘ Government ”) of the one part,
and William J. Lenahan, acting on behalf of California Arabian Standard Oil
Company (hereinafter referred to as the “ Company ”) of the other part.
It is hereby agreed between the Government and the Company in manner
following :—
Article 1.
This agreement, known as the Supplemental Agreement, is supplemental
firstly to the agreement (hereinafter referred to as the “ Saudi Arab Conces
sion ”) made between the Government of the one part and the Standard Oil r
Company of California of the other part and signed on the 29th day of May, 1933
(corresponding to the 4th day of Safar, 1352, a.h.), and secondly to the Letter
of Agreement (hereinafter referred to as the £ ‘ Second Principal Agreement ”)
addressed by L. N. Hamilton, on behalf of the Standard Oil Company of
California, to and accepted by his Excellency Sheikh Abdulla Sulaiman-al-
Hamdan, on behalf of the Government, and bearing the same date as the Saudi
Arab Concession.
Article 2.
The Saudi Arab Concession and the Second Principal Agreement have been
duly transferred to and vested in the “ Company ” (party hereto) after notifica
tion to and with the consent of the Government, all in accordance with article 32
of the Saudi Arab Concession, and the Company has duly undertaken and fulfilled
to date the duties and obligations of the ‘ £ Company ’ ’ thereunder.
Article 3.
On the 16th day of October, 1938 (corresponding to the 22nd day of Shaaban,
1357, a.h.), the Company declared, under article 10 of the Saudi Arab Concession,
that oil had been discovered in commercial quantities, and that all the obligations
of the Company attendant upon such declaration have been duly fulfilled to date.
Article 4.
Both the Government and the Company are now desirous of adding to and
otherwise extending the territory granted to the Company by the Saudi Arab
Concession, and of making such other modifications and alterations to the Saudi
Arab Concession and to the Second Principal Agreement as hereinafter appear,
and the Company has undertaken to make, and the Government have consented
About this item
- Content
This file relates to oil concessions in Saudi Arabia, particularly the Hasa [Al Hasa] concession between the Government of Saudi Arabia and the Standard Oil Company of California (SoCal). It includes discussion of the following:
- Oil negotiations in Saudi Arabia during March and April 1933, and the reported involvement of Major Frank Holmes in negotiations relating to the Kuwait (also spelled Koweit in the file) [Saudi-Kuwaiti] neutral zone.
- Details of an agreement for the oil concession relating to the Hasa region of Saudi Arabia, made between the Government of Saudi Arabia and SoCal (signed on 27 May 1933), and assigned by SoCal to its subsidiary, the California Arabian Standard Oil Company (Casoc).
- British concerns regarding a request made by Casoc via the United States Embassy for its aeroplane to be permitted to fly over Kuwait and Bahrain, as part of a survey of the region relating to its oil concession.
- Reports that Casoc may be interested in exhanging the southern half of its Hasa concession for land further west, and the effect that this might have on Britain's negotiations with Ibn Saud [‘Abd al-‘Azīz bin ‘Abd al-Raḥmān bin Fayṣal Āl Sa‘ūd].
- Reports of the discovery of oil in Hasa in 1935, and the discovery of commercial quantities of oil there in March 1938.
- Reports that Casoc is considering the possibility of laying a pipeline from Hasa to Bahrain.
- Casoc's oil rights in the Kuwait neutral zone.
- The progress of operations carried out in Hasa by Casoc, including the status of its wells at Dhahran.
- An account of a visit made 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. at Bahrain (Hugh Weightman) to Casoc's site at Dhahran as well as to other areas in the region, in May 1939.
- Details of a loan from Casoc to the Government of Saudi Arabia.
- Reports of Casoc having taken the decision to construct a refinery at Ras Tanura.
The file features the following principal correspondents: 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. ; 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; 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. , Kuwait; the Secretary of State for the Colonies; His Majesty's Chargé d’Affaires, Jedda; the His Majesty's Minister at Jedda; officials of the Foreign Office, the 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. , the War Office, the Air Ministry, and the Petroleum Department; representatives of Casoc.
In addition to correspondence the file includes the following:
- Copies of the oil agreement and a supplementary agreement between the Government of Saudi Arabia and the Standard Oil Company of California, dated 1933 and 1939 respectively.
- Extracts from Bahrain and Kuwait intelligence reports.
- The minutes of an interdepartmental meeting held at the Colonial Office on 26 April 1933, concerning British interests in oil in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. (notably Kuwait, Bahrain, Hasa in Saudi Arabia, and the Kuwaiti neutral zone).
- Draft and final copies of a War Office report entitled 'Brief Summary of the Oil Situation in the Middle East, November 1934'.
The date range of the volume is 1923-1945 but only a handful of items date from before 1933. These include copies of 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. 's correspondence with the Secretary of State for the Colonies and the Foreign Secretary to the Government of India respectively, which date from 1923 to 1926 and concern the possibility of oil development both in Qatar and on the Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. .
The file includes three dividers which give a list of correspondence references contained in the file by year. These are placed at the back of the correspondence (folios 2-4).
- Extent and format
- 1 file (574 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 for this description commences at the inside front cover with 1, and terminates at the last folio with 575; 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 in Latin script View the complete information for this record
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- Reference
- IOR/L/PS/12/2115
- Title
- Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)'
- Pages
- 7r:11r, 11v:14v, 61v:64v, 97v:101v, 148r:149v, 235r:243v, 250r:251v, 423r:439v, 458v:462v
- Author
- Unknown
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