'File 5/1 XIV Kuwait Oil Company' [‎229r] (467/570)

9. Negotiations in respect of the area belonging to the Sheikh of Bahrein,
but not allotted to the Bahrein Petroleum Company in their lease, have been
carried on between the sheikh on the one hand and both Petroleum Concessions
(Limited) and the Bahrein Petroleum Company, on the other, but so far without
f definite result.
10 The Bahrein Petroleum Company was incorporated in Canada in 1929,
the whole of the share capital being subscribed by the Standard Oil Company of
California. In 1936 an agreement was reached between the Standard Oil
Company and the Texas Corporation, whereby the latter company obtained a half
interest in the Bahrein Petroleum Company. As the Texas Oif Corporation has
markets in various Eastern countries, this arrangement secures an outlet for the
refined products obtained from the refinery recently erected in Bahrein.
Qatar.
11. The oil rights in this territory were originally granted to the Anglo-
Persian Oil Company on the 17th May, 1935. A political agreement was entered
into on the 5th June, 1935. The agreement, which runs for a term of seventy-five
years, was transferred to Petroleum Development (Qatar) (Limited) (the operating
company of Petroleum Concessions (Limited) in Qatar) on the 5th February, 1937.
Geological survey work has been carried out and arrangements have been made
to commence deep drilling operations in the autumn of 1938.
12. Considerable difficulty has arisen between His Majesty’s Government
and the Saudi Arabian Government with regard to the boundaries between Qatar,
Abu Dhabi and Saudi Arabia. Ibn Sand claims a frontier which in effect overlaps
the limits of the concession held by Petroleum Development (Qatar) (Limited)
and indicated in the map attached to the concession. His Majesty’s Government
do not admit Ibn Saud’s claim, but have offered him a frontier which, while lying
to the south of the Qatar concession boundary, is nevertheless beyond what they
regard as the legal limit laid down in the Anglo-Turkish Convention of 1914.
The Trucial Sheikhdoms.
13. The position in the Trucial States A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. is as follows :—
14 A jman. —Petroleum Concessions (Limited) held an option giving them
the exclusive right to explore for oil in this territory for a period of two years.
The option period expired on the 22nd January, 1938, but the company have so
far failed to induce the sheikh to grant an oil concession.
15 Ahu Dhabi. —The option of Petroleum Concessions (Limited) expired
on the 3rd January, 1938. Negotiations for a concession were recently suspended
as the sheikh is proving difficult.
16. Debai. —Petroleum Concessions (Limited) hold a concession in respect
of this territory for a period of seventy-five years (Commercial Agreement dated
the 22nd May, 1937, and Political Agreement dated the 5th February, 1937). No
work has so far been carried out.
17. Ras-al-Khaimah. —The option of Petroleum Concessions (Limited)
expired on the 1st August, 1937. A political agreement, preceding the conclusion
of a commercial agreement, was signed on the 25th March, 1938. Negotiations
for the latter are in suspense.
18. Sharjah. —Petroleum Concessions (Limited) hold a concession in respect
of this area for a period of seventy-five years (Commercial Agreement dated the
17th September, 1937; Political Agreement signed the 12th November, 1937).
19. Umm-al-Quwaim. —No option or concession has yet been obtained in
respect of this territory, but the sheikh recently informed Petroleum Concessions
(Limited) that he was “ willing to negotiate."
Aden Protectorate.
20. An application for an oil exploration licence in respect of this territory
has been made by Petroleum Concessions (Limited) and also jointly by the
Standard Oil Company of California and the Texas Corporation. Petroleum
Concessions (Limited) have priority, and the Protectorate authorities have been
recommended to grant that company an exclusive exploration permit for a term of
two years, after which the other companies could be given an exclusive permit in
respect of the territory not retained by Petroleum Concessions (Limited). A draft
of the exploration permit has been agreed between the Colonial Office and the
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