"ملف 39/8، تطوير النفط في الشرق الأوسط: خط الأنابيب العابر لشبه الجزيرة العربية" [و‎‎١‎٧] (١٦١/٣٣)

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Article 9.
Within ninety days after the commencement of drilling, the Company shall
relinquish to the Government such portions of the exclusive area as the Company
at that time may decide not to explore further, or to use otherwise in connexion
with this enterprise. Similarly, from time to time during the life of this contract,
the Company shall relinquish to the Government such further portions of the
exclusive area as the Company may then decide not to explore or prospect further,
or to use otherwise in connexion with the enterprise. The portions so relinquished
shall thereupon be released from the terms and conditions of this contract,
excepting only that during the life of this contract the Company shall continue
to enjoy the right to use the portions so relinquished for transportation and
communication facilities, which, however, shall interfere as little as practicable
with any other use to which the relinquished portions may he put.
Article 10.
The Company shall commence operations connected with drilling as soon as
a suitable structure has been found, and in any event if the Company does not
commence such operations within three years from the end of September 1933
(subject to the provisions of article 27 hereof), the Government may terminate
this contract. Once commenced, these operations shall be continued diligently
until oil in commercial quantities has been discovered, or until this agreement is
terminated. If the Company should fail to declare so sooner, the date of discovery
of oil in commercial quantities shall be the date upon which the Company has
completed and tested a well or wells capable of producing, in accordance with
first-class oilfield practice, at least 2,000 tons of oil per day for a period
of thirty consecutive days.
Operations connected with drilling include the ordering and shipping of
materials and equipment to Saudi Arabia, the construction of roads, camps,
buildings, structures, communication facilities, &c., and the installation and
operation of the machinery, equipment and facilities for drilling wells.
Article 11.
Upon the discovery of oil in commercial quantities, the Company shall
advance to the Government the sum of £50,000 gold, or its equivalent, and
one year later the further sum of £50,000 gold, or its equivalent. The due
date of the first advance shall be the date of discovery of oil in commercial
quantities, as provided in article 10 hereof, and the due date of the second advance
shall be one year later. In each case the Company shall have sixty days following
the due date within which to make the advance. Both of these advances are on
account of royalties which may be due the Government and consequently the
Company shall have the right to recover the amount of these advances by way of
deductions from one-half of the royalties due the Government.
Article 12.
Since it has been agreed that the annual rental of £5,000 gold, or its
equivalent, is payable to the date of the discovery of oil in commercial quantities,
^ and since it has been agreed also that this annual rental is to be payable in
advance, it may happen that the last annual rental paid pi 101 to the date of
discovery of oil in commercial quantities will cover a period beyond the date
of such discovery. In case that this period should be equal to or greater than
one-fifth of a year, the proportionate amount of the £5,000 pounds gold, or its
equivalent, corresponding to such period shall be treated as an advance on account
of royalties due the Government, and consequently it shall be recoverable by the
Company by way of deductions from one-halt of the royalties due the Government.
Article 13.
As soon as practicable («\e., allowing a reasonable time for ordering and
shipping further materials and equipment to Saudi Arabia and commencing
further work) after the date of discovery of oil in commercial quantities, the
Company shall continue operations connected with drilling by using at least two
strings of tools. These operations shall be continued diligently until the proven
area has been drilled up in accordance with first-class oilfield practice, or until
the contract is terminated.
[49—48]
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