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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [100v] (200/1153)
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
This transcription is created automatically. It may contain errors.
8
Government and the Company shall thereafter be free of all further obligations
under this contract, except as follows :—
(1) The Company’s immovable property, such as roads, water or oil wells
with their casings, permanent buildings and structures, &e., shaU|
become the property of the Government free of charge. ^
(2) The Company shall afford the Government an opportunity to purchase
the movable property of the enterprise in Saudi Arabia at a fair price
equal to the replacement value of such property at the time, less
depreciation. Any controversy about this fair price shall be settled
by arbitration in the same manner as provided in article 31 of this
contract. If the Government declines or fails, within two months
following the date of the termination of this contract, to purchase
such movable property, or if the Government fails to tender the
purchase price within thirty days after it has been decided upon, by
agreement or arbitration, the Company shall then have six months
within which to remove such property.
Article 29.
In case of the breach by the Company of its obligation to make the second
payment of £20,000 gold, or its equivalent as provided in article 6 hereof, or of
its obligation to commence operations connected with drilling as set forth in
article 10 hereof, or of its obligation to make two advances of £50,000 gold, each,
or its equivalent under the terms and conditions provided in article 11 hereof, or
of its obligation under article 30 hereof to pay the amount of any damages which
may be assessed upon the Company, the Government’s remedy shall be the right
to give the Company notice at once for such breach, and thereupon if the Company
does not take immediate steps to comply with the obligation so breached, the
Government may terminate this contract.
Article 30.
Except as otherwise provided in article 29 hereof, the penalty for the breach
by the Company of any of its obligations under this contract shall be damages
which shall be payable to the Government under the following conditions : ^
The Government shall at once notify the Company of any alleged breach on
the part of the Company, setting forth the nature of such breach. Any
controversy which may arise as to whether or not the Company has committed
the alleged breach shall be settled by arbitration in the manner 'provided in this
agreement. Once that the fact of the commission of the breach has been
established, the failure of the Company to take immediate steps to remedy the
breach shall subject the Company to the payment of damages to the Government,
and if such damages cannot be agreed upon they shall be determined by arbitra
tion in the manner provided in this contract. The amount of any damages which
may be determined shall be paid to the Government by the Company within
sixty days after such determination.
Article 31.
If any doubt, difference or dispute shall arise between the Government and
the Company concerning the interpretation or execution of this contract, or
anything herein contained or in connexion herewith, or the rights and liabilities
of the parties hereunder, it shall, failing any agreement to settle it in another
way, be referred to two arbitrators, one of whom shall be chosen by each party, and
a referee who shall be chosen by the arbitrators before proceeding to arbitration
Each party shall nominate its arbitrator within thirty days of being requested in
writing by the other party to do so. In the event of'arbitrators failing to agree
upon a referee, the Government and the Company shall, in agreement appoint
a referee, and m the event of their failing to agree they shall request the
President of the Permanent Court of International Justice to appoint a referee.
The decision of the arbitrators, or in the case of the difference of opinion between
them the decision of the referee, shall be final. The place of arbitration shall be
such as may be agreed upon by the parties, and in default of agreement shall be
I he Hague, Holland.
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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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [100v] (200/1153), British Library: India Office Records and Private Papers, IOR/L/PS/12/2115, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100040749881.0x000003> [accessed 1 April 2025]
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Copyright: How to use this content
- 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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