'Mosul Question, Lausanne 1922-1923 and after - Papers, despatches, speeches - Hotel de la Mer at Lausanne - Correspondence about oil' [‎217r] (431/501)

February 17, 1923.
OIL ENGINEERING AND FINANCE
205
establishment, or otherwise, of other claims by an
impartial tribunal, the oilfields at Mesopotamia should
be open to exploitation by nationals of all countries.
The situation has been still further confused by the
fact that an American company acquired from the Heirs
of the late Sultan Abdul Hamid all their rights and
title to the Mesopotamian oilfields. We have read
recently that this company includes such important
American personalities as Colonel Willia'm Boyce
Thompson and Mr. Samuel Untermyer. These names
will convey a great deal to our American readers ; and
to us, the fact that this American company has very
powerful financial and political support.
We are able to state that at the time
of writing no solution to this question is in
sight. We have the Turkish Petroleum Com
pany’s claims opposed by the American Govern
ment and by the American company who have acquired
the rights of the late Sultan’s Heirs. We have the
French Govern'ment maintaining a passive attitude,
relying for their interests upon the San Remo Agree
ment. We have the Turks opposing Lord Curzon at
the Lausanne Conference on the question of the Mosul
frontiers, and in spite of what our contemporaries may
say to the contrary the oil question undoubtedly has
influenced the attitude of all the Powers there repre
sented. We are aware that the British Government,
at any rate until recently, was not disposed to consider
the claims made by the Heirs of the late Sultan ; and
we know that it is the intention of the British Govern
ment to insist upon British control of the Mesopo
tamian oilfields. But we cannot help thinking that
in all these conflicting claims there should be a reason
able basis for compromise, for we venture the opinion
that without compromise no lasting or amicable settle
ment will be reached.
PETROLEUM DEVELOPMENT IN THE
RED SEA REGION.
The Red Sea region of Egypt offers possibilities
for the development of mineral oil, according to a
report made to the Royal Geographic Society of Cairo
by the Egyptian Minister of Finance, who recently
made a tour of the region. The Anglo-Egyptian Oil
fields Co. holds the concession for developing the oil
deposits of Hurghada and Gemsah. A total of 44
wells have been drilled at Hurghada, 18 of which are
non-productive and have been abandoned. The 22
wells in operation are now producing about 600 tons
of crude per day, or at the rate of 200,000 tons per
year. The product is very heavy but is said to con
tain a high proportion of fuel oil. The operations
employ 800 men and several American drillers.
At Gemsah, on the African shore opposite the en
trance to the Gulf of Suez, the Anglo-Egyptian Oil
fields Company has sunk 22 wells, six of which were
productive, while only three are in operation at pre
sent. One of these wells which was drilled in 1914
was a gusher and flowed 4,000 tons the first day,
flooding the surrounding territory with crude oil ; its
To give a resume of the position, the Turkish
Petroleum Company’s claims are based upon Abdul
Hamid’s concessions, which Lord Curzon accepts as
valid. To whom do they now belong? Did the seizure
of these concessions in 1909, by the Young Turk
Government, constitute legal possession, and, if so,
did the 1914 negotiations invest the Turkish Petroleum
Company with an actual concession ? If they did,
then we see no reason why the promises made by the
Young Turk Government in 1914 to other British
Nationals, and the Nationals of other countries, who
were a party to these negotiations, should not be now
claimed as valid concessions. It is only logical to
assume that the point of agreement reached in 1914 on
all questions refers to such questions as a whole and
not alone to the question of the oil rights. If the
seizure by the Young Turk Government in 1909 was
illegal, to whom then do the concessions belong? Do
they belong to the Heirs of the late Sultan, or to the
Civil List Administration ? The American company,
which has acquired the rights of the Heirs of the late
Sultan, evidently thinks that the Heirs’ claims are
valid. If this view should meet with the support of
the American Government there is some danger that
the control of these important oilfields will not remain
in British hands. \Ye must confess that we view the
situation with some misgivings. We cannot afford any
further misunderstandings with America, which, if
added to the present political complications, could only
have regrettable results. We venture the hope that
this question, upon which we feel the peace of the Near
East really depends, will receive the immediate atten
tion of the various governments, corporations, and
persons concerned.
flow has constantly decreased, however, until its pre
sent production is not over 10 tons a day. The total
production at Gemsah is now about 50 tons per day.
The oil from this region is light and rich in gasolene
and kerosene. The product of both the Hurghada and
Gemsah wells is transported by sea to the Government
refinery at Suez.
The Egyptian Government is prospecting for oil
at Abou Chaar, about four kilometres from Hurghada,
and at Abou Dibba. In the former locality one well
is in process of being drilled, and it is said that the
indications are decidedly encouraging. At Abou
Dibba, where 13 wells have been sunk, petroleum has
been found at a comparatively shallow depth in five
of them. Enough work has been done to lead the
Government experts to believe that this deposit is of
considerable importance.
American Bunker Coal Market.
New York, February 8th.
The following change has occurred in the quota
tions for bunker coal at United States ports : Hamp
ton Roads, $7.00 per ton.— Reuter’s Trade Service.