'File 5/1 XIV Kuwait Oil Company' [‎228v] (466/570)

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Concessions (Limited) does not include an Iraqi Government Director. Lord
Cadman is chairman of both companies. The shareholding of the Iraq Petroleum
Company is divided as follows :—-
Percentage.
British—
Anglo-Iranian Oil Company ... ... ... 23-75
Dutch—
Royal Dutch Shell ... ... ... ... ... 23-75
French—
Compagnie Francaise des Petroles ... ... 23-75
American—
Near East Development Company (i.e., Standard
Oil of New Jersey and Socony-Vacuum in
the proportion of 50-50) 23-75
Participation and Investments (Limited)—
C. S. Gulbenkian ... ... ... ... ... 5 00
100-00
Koweit.
4. The concession for this territory is held by the Koweit Oil Company
(Commercial Agreement, dated the 23rd December, 1934; Political Agreement,( 2 )
dated the 5th March, 1934), the capital of which is held jointly by the Anglo-
Iranian Oil Company and the Gulf Oil Corporation of America (Mellon Group).
5. One well was put down on the north side of Koweit Bay, but only small
quantities of oil were found. Another well has been drilled at Burgan. south of
Koweit Bay, and was successful in striking oil.
Koweit Neutral Zone.
6. The boundaries between Koweit and Nejd were settled at the Uquair
Conference ol November 1922, when certain territory was recognised as common
to these two States. Under this settlement the Rulers of Koweit and Nejd were
to enjoy equal rights in the zone until such time as a fresh agreement should be
arrived Q t between them. Consequently, neither Ruler can grant an oil concession
m the zone without the consent of the other.
7. Matters in regard to oil negotiations in the Neutral Zone have, in
consequence, reached a deadlock. Petroleum Concessions (Limited) cannot move
because the Sheikh of Koweit, to whom application has been made, refuses to grant
respect of his share of the oil rights in the zone, since he considers
that he is entitled to all the rights in the zone and hopes to obtain them when
i bn Saud dies. Petroleum Concessions (Limited), however, have been informed
hv the Sheikh of Koweit that he will, if he changes his mind, inform them before
any other company. On the other hand, Ibn Saud, the ruler of Saudi Arabia, who
is novv thought to favour exploitation of the zone by a British company, is
committed to the Standard Oil Company of California by reason of a special
agreement with that company, under which they received a preferential position
m respect of Ibn Saud s rights in the zone much the same as that which they
received in regard to the unallotted areas in Nejd (see paragraphs 24-28 below).
Bahrein.
d f ^ eve ^ 0 pnie n t in Bahrein is being undertaken by the Bahrein
Fetroleiim Company (Limited) under a lease granted to the company by the Sheikh
of Bahrein on the 29th December, 1934, and modified on the 3rd June, 1936. The
lease covers practically the whole of the Island of Bahrein, and runs for a period
hLn 7~» Ve / earS from u the 1st January, 1935. Up to the end of 1937 58 wells had
been drilled or were about to be drilled, 33 were producing, and 14 were shut-in.
I reduction during 1937 amounted to approximately 1,108,894 tons.
concesLnarv^-nmn^n^ft^l ' 3 ' n memorandum an agreement between the
an assentim? nartv' b-e n S' n ? 8 Government, to which the Ruler concerned is usually
ZCtUhfnter^a/af b ‘he company undertakes not to transfer the concession to
t,8h ' nterest8 and t0 be « ulded b .v ‘he advice of His Majesty’s Government generally.