Coll 30/216 'Development of oil supplies in the Middle East.' [‎24r] (47/131)

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(v) Ras al-Khaima,
92. The company obtained a prospecting licence over an area of 300 square
miles for five years from the 7th December, 1938, which was later extended for a
further period ending one year after the cessation of hostilities between Great
Britain and Germany. Rs. 40,000 were paid on signature, and Rs. 30,000
annually for five years; thereafter the annual payments rise to Rs. 45,000. This
licence applies to prospecting only; a further agreement giving the right to
drill would have to be concluded.
(vi) Kalba.
93. The company has a concession for 75 years from the 20th December, 1938,
over an area of 600 square miles. Rs. 60,000 were paid on signature, with annual
payments of Rs. 24,000 until oil in commercial quantities is found ; then a sum
of Rs. 2,00,000 has to be paid. Royalty is to be at Rs. 3/- per ton, with a minimum
annual payment of Rs. 90,000.
(vii) Umm al-Qaiwain.
94. In 1939 the company approached the Shaikh with a view to obtaining
a concession, but he was then unable to negotiate on account of tribal troubles
and disputes with neighbouring rulers. These troubles and disputes are now
over, so it is proposed to approach him again in the near future.( 3 ) The area
covers some 300 square miles.
95. Prospects are said to be reasonably good in all these Trucial shaikhdoms,
but difficulties are likely to arise unless and until the frontiers of these States
are properly defined and demarcated.
XVII .—Oman and Dhofar.
96. On the 24th June, 1937, the Sultan of Muscat granted Petroleum
Development (Oman and Dhofar), Ltd., an associated company of the I.P.C.,
two separate concessions, one covering Oman and the other Dhofar; the total
area is 52,000 square miles. Each concession contained an option period of
seven years during which the company could either take up the concession or
forfeit all rights. Fixed payments of Rs. 3,00,000 in the case of Oman and of
Rs. 1,80,000 in the case of Dhofar were guaranteed. The company took up both
the concessions in 1944 and duly paid the above-mentioned sums. In article XII
of both agreements the company recognised “ that certain parts of the Sultan’s
territory are not at present safe for its operations. The Sultan undertakes on
his part to use his good offices with a view to making it possible for the repre
sentatives of the company to enter such parts, and will inform the company as
soon as such parts become safe.” His Majesty’s Government and the company
entered into a pre-emption agreement in 1938.
97. Annual rental increased from the time of the taking up of the options in
1944 to Rs. 84,000 in respect of Oman and Rs. 48 000 in the case of Dhofar.
Royalty is Rs. 3/- per ton, with a minimum in each case equivalent to the annual
rentals.
98. Geological surveys were carried out in Oman and Dhofar in 1937-38
and aerial surveys were made of the wLole Trucial coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. and the strip of Oman
to the west of the Jabal Akhdar and the mountains running northwards to Ras
Musandam in 1938-39. Arrangements for further surveys had to be cancelled
because of the war. Results are said to be encouraging Geophysical survey
work is now contemplated, but progress will depend upon : (i) ability to engage
competent staff, (ii) ability to buy or hire the necessary equipment, (iii) whether
or not the rulers concerned can arrange for the safety of the parties in the remoter
areas, (iv) proper demarcation of the frontier with Sa’udi Arabia.
XVIII .—Aden Protectorate.
99. Petroleum Concessions, Ltd., an associated company of the I.P.C., holds
an exploration licence from the Governor of Aden, dated the 12th January, 1938.
The area covered the Western Aden Protectorate and the Hadramaut. a total of
some 110,000 square miles.
(*J Since the paper was written, information has been received that the Shaikh granted the
concession at the beginning of April 1945. No details are available.
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