'File 5/1 XIV Kuwait Oil Company' [‎230r] (469/570)

27 A further provision is that the Standard Oil Company of California
I, 11 Coyg the right to recover “by means of deductions from one-half of the
PCities due to the Government” the amount of two loans totalling £50.000 gold
ULived by the Saudi Arabian Government from the company.
I -28 On the same date as the conclusion of this modified agreement letters
r rp exchanged by the company and the Saudi Arabian Government defining the
LLnanv’s preference rights in regard to (a) “the balance of Eastern Saudi
Xa” referred to in paragraph 26 above, and (b) the Koweit Neutral Zone (see
narasraph 7 above). The effect of these preference rights in (a) is to entitle the
Coanv to acquire an oil concession on terms equal to those which may be offered
L the Saudi Arabian Government by another company. If the Standard Oil
romnany of California elect not to exercise their right the Saudi Arabian
L-ernment is free to accept the other company s offer. Otherwise, the standard
Oil Company of California’s preference right shall continue at least so long as the
provisions of the special agreement remain in force.
{The Yemen. ... . . A
29. No concession has so far been obtained in this territory owing to e
attitude of the Imam Yahya, who opposes the exploitation of his country by foreign
interests The French interests in Petroleum Concessions (Limited) have, how
ever. been successful in inducing the Imam to permit two geologists to visit the
j Yemen for a period of six months.
\ Muscat and Oman. , A
30. Two concessions(’) have been obtained from the SulUn of Muscat an
I Oman by Petroleum Concessions (Limited), one in r f Pf ‘ th commer
excent the district of Dhofar and the other in respect of Dhofar. Both cominer
I naf agreements are dated the 24th June, 1937, and run for a period of seventy-
five years. The Sultan at first showed himself averse from being '
anv wav with any political agreement between His Majesty s Government and the
company This question was, however, discussed with the bultan during his visi
“Xs Country in April of ihis year? and the Sultan m the end agreed to be
associated with such an agreement in a modified loim. eastern
81 An aerial exploration which it is hoped to carry out m tne eastern
portion of the Aden Protectorate will probably include the western portion o
j Muscat and Oman.
{Refinery Agreement with Petroleum Concessions (Limited). ^ .
32. A general Refinery Agreement was entered s
Government and Petroleum Concessions (Limited) f pn le m ’ in the
Brieflv the aereement provides that whenever the production of crude oil ni tne
.areas over which the company hold, or may hold, oil concessions in the Per » ia “
I Gulf area reaches a total of 500,000 tons per annum, the C0m Pf.7 o s ' 1 * l 1 ( ] lt e ' 1 “‘’
site to be agreed a refinerv or refineries with a total capacity of not less tfia
250 000 ton! per annum, unless it can be shown to the satisfaction of His
I Majesty’s Government that this would be precluded by commercial eonsMerations.
The agreement also provides for a re-examination of the ques ion of the rehnerv
capacity in the event of the total annual production exceeding 1 million ton,
per annum.
Pre-emption of Oil in the Event of an Emergency.
33. The political agreements entered into between His ilajes^
ment and Petroleum Concessions (Limited), in respect of t vide i nter
by the company in Qatar, Debai, Sharjah and Ras n a ;;G h t;“ fifXe existence
alia, that in the event of a state of national emergency Maiestv's Govern-
of which His Majesty’s Government shall be the sob judge) His M j ) ^
ment shall have the sole right of pre-emption of a 1 “^^"hav! al“
concessions and of all the products thereof. His Majesty sGoveinment have mso
the right to require the company to the extent of an) ^ f
(.) A separate concession may be granted by the Sultan later for his Asiatic territory,
l e., Gwadur.