Coll 30/9 'Persian Gulf: Administration Reports 1926-1938' [‎83r] (170/1028)

( iii )
the area concerned, one of the most desolate on the Arabian Coast, and
ne tact that the local tribes, though nominally under Muscat, are in reality
under no control whatever, the task was exceptionally difficult.
Oil Interests—AfUx several years, during which Oil Companies dis
played no interest m Muscat, in the year under review they began to turn
their attention to this Sultanate. Petroleum Concessions Limited wished
to open negotiations with the Sultan but owing to His Highness’s prolonged
absence in Dhofar, an outlying and inaccessible area of his dominions this
could not be done. In the meantime the Sultan approached the Standard
Oil Company of California by sending them some samples of oil which he
had found at Dhofar. His Highness was expected back in Muscat early
in 1937 when Petroleum Concessions Limited hoped to commence negotia
tions with him.
In January the Anglo-Iranian Oil Company secured an oil option in
respect of his territory from the Shaikh of Abu Dhabi.
In July Major Frank Holmes on behalf of Petroleum Concessions
Limited (who have acquired the local rights of the Anglo-Iranian Oil
Company) began negotiations with the Shaikh-of Dibai for conversion of
the Dibai option into a concession. These negotiations proceeded very
slowly and by the end of the year a concession had not yet been obtained.
Petroleum Concessions Limited under their optional rights sent a survey
party into some of the Shaikhdoms.
The importance of Petroleum Concessions Limited, which Company
has the approval of His Majesty’s Government, obtaining concessions on the
Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. lies in the fact that the Standard Oil Company of California,
who are already operating concessions in Bahrain and in Saudi Arabia on
the mainland of Hasa opposite Bahrain, are extremely anxious to capture
also the Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. . To this end, towards the end of the year this Com
pany commenced various underground intrigues on the Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. by
sending confidential emissaries with messages to the Shaikhs that they
should refuse Petroleum Concessions Limited’s offers and, when Petroleum
Concessions Limited’s options had expired, grant concessions to themselves.
Measures were taken to counter these intrigues, but the situation at the
close of the year still gave cause for anxiety.
Petroleum Development (Qatar) Limited continued their survey of
Qatar and commenced drilling for water, which they had undertaken to
perform for the Shaikh. At the end of the year no potable water had been
found.
The Bahrain Petroleum Company Limited had an even more success
ful year than during 1935 when 176,388 tons of crude oil were shipped from
Bahrain. During the year under review 500,400 tons of crude oil and
9 200 tons of fuel oil were exported. The total personnel of the Company
for the last two years is as follows : —
1935.
49
26
61
1,283
244
1936.
153
157
323
3,747
658
Americans .
European British subjects
Indian British subjects
Bahrainis
flranians .
Others Iraqis .
^Kuwaitis, etc.
The Californian Arabian Standard Oil Company continued their ope
rations throughout the year in Hasa without any signal success.
The Kuwait Oil Company continued drilling throughout the jear
without striking oil. i • t ^ Tn ord+o
solution of this difficult problem bj the cud of tb, v,„r.