Coll 30/216 'Development of oil supplies in the Middle East.' [‎23v] (46/131)

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thereafter. Royalty is at the rate of Rs. 3/- per ton; royalty payments will in
time take the place of the rentals. This concession was originally granted to
the A.I.O.C., but it was transferred to Petroleum Development (Qatar) on the
16th July, 1937.
79. This concession gave the holder the sole right to develop oil in the
Qatar peninsula and throughout the Shaikh’s territory (4.000 square miles).
80. In 1935 His Majesty’s Government and the concessionnaire signed ai^^
agreement whereby the former obtained pre-emption rights over oil producec^^
in Qatar in war time.
81. Drilling began in 1939 and continued until August, 1942, by which time
3 test wells had been completed in the Dukhan area near the west coast of the
peninsula; promising shows of oil were obtained in two of these wells. Further
operations were prevented by the measures taken by the British military
authorities to deny oil to the enemy.
82. A scheme to resume drilling with two rigs and to produce oil at the
rate of 1,000,000 tons a year is now under consideration, but it seems doubtful
whether anything beyond the rehabilitation of the existing wells will be possible
until after the war.
83. There are promising indications of petroleum in the southern part of
the Qatar peninsula adjoining the Sa’udi Arabian border, but difficulty in the
development of this region has already arisen, because of conflicting claims as
to the precise frontier between the two states. This frontier has never been
delimited.
XVI.— Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. .
84. Petroleum Development ( Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. ), Ltd., an associated company
of the I.P.C. with a capital of £224,000, has obtained concessionary rights in
the shaikhdoms of Abu Dhabi, Dibai, Sharja, Ajman, Ras al-Khaima and Kalba
and has hopes of acquiring similar rights in Umm al-Qaiwain. These small
states, which are all British-protected, have special treaty relations with the
British Government.
(i) A bu Dhabi.
85. The Anglo-Iranian Oil Co. obtained from the Shaikh in 1936 a 2-year
option over the whole of his territory (23,460 square miles). This option was
later transferred to Petroleum Development ( Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. ), Ltd., which on
the 11th January, 1939, obtained a concession valid for 75 years over the whole
area. Rs. 3,00,000 were paid on signature. Annual payments are Rs. 1,00,000
until oil is discovered in commercial quantities. Royalty is to be at Rs. 3/- per
ton with a minimum payment of Rs. 2,50,000 per annum for 2 years and
Rs. 5,00,000 annually thereafter.
86. No work has yet been carried out.
(ii) Dibai.
87. The Shaikh granted the company a concession for 75 years on the
22nd May, 1937, covering 1,250 square miles. Rs. 60,000 were paid on signature.
Annual payments are : Rs. 30,000 until oil in commercial quantities is found,
thereupon Rs. 2,00,000 down and royalty at the rate of Rs. 3/- per ton with a
minimum annual payment of Rs. 90,000.
88. No exploratory work has yet been undertaken.
(iii) Sharja.
89. The Shaikh granted the company a concession for 75 years on the
17th September, 1937, over an area of 164 square miles. Rs. 60,000 were paid
on signature. Annual payments are to be Rs. 30,000 until oil is discovered in
commercial quantities, whereupon Rs. 2,00,000 will be paid down and a royalty
of Rs. 3/- per ton with a minimum annual sum of Rs. 90,000.
90. Drilling is to begin before 17th September, 1946, failing which the
Concession will become null and void.
(iv) Ajman.
91. The company obtained a prospecting licence over 230 square miles for
5 years on the 23rd March, 1939, on payment of Rs. 15,000. This licence was
extended later to the 23rd March, 1949, and such period thereafter as to assure
the company 5 complete years for prospecting after the conclusion of hostilities
between Great Britain and Germany; the rental was fixed at Rs. 12,000 per annum