Page 125 - Records of Bahrain (6)_Neat

Revision of royalties 113

LNILiONALAND INDIA 0FP1013,
COIMlM/riAL NJLLTKHALL,
LONDON, S.V/.1.
Kxt.3606/ifj6
20th June,
My door Huy,
Reference ia murte in Prior'a Despatch Wo.39US of [jth April,
regarding the Bulirein State Budget 1 to the probable length
ol' lil'e of the Dalirein oili'icld.
2. \(o have asked the Ministry ol' Fuel und Power for their
latest inl'onaation on this subject. They aqy that, according
to the bo3t information available to them, there remained in
the Bahrein oilfield at the end of 19*1-5 about 3*3,000,000 tons
of proved reaorvea. It i3 thought that moot of this should be
recoverable, but it does not, of course, necessarily follow
that the Company will be ublo, or willing, to maintain their
present production rate of 1,000,000 tons (or a little leas)
per annum. The likelihood is that tire annual output will taper
off and with tire diminishing annual production the field will
continue to produce for a good many more than 35 years.

3. The Ministry say that the above information is founded on
estimates from American sources, but tire figures cunnut be
guaranteed. They ask that the figures should not be given to
the doll re in Government, or ai\y other authority outside Government
service. There would, however, appear to bo no objection to the
Bahrein Government asking the Company themselves for infonnation
about the resources of the oilfield, and it would bo interesting,
if this were done, to know the Company's reply.
Incidentally, we wore concerned to roud the severe
criticisms in Prior's despatch and its enclosure of the efficiency
of Bolgrave's administration. I am not sure whether you will feci
able yet to form a judgment, but, even allowing for a tendency to
over-statoment, the lack of confidence which Prior displays
is, if it is-well-founded, extremely disturbing. Vfe should,
therefore, be very grateful for your opinion on the validity
of the grounds of complaint so freely expressed and, in
particular, would like'to know whether you share Prior's
doubt' "whether it will be possible to males much improvement
during Mr. Bolgrave's tenure of the post".
5. I am sending a copy of this letter to Woightinon.

Yours sincerely,
(Ggd.) 13,P. Donaldson,

Tho lion'bio Lt.-Col, tt'.H. Huy, CGI, 0113,
Political Resident's Comp,
Bahrein,