Page 129 - Records of Bahrain (6)_Neat

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Revision of royalties 117

No. • b **"] - 'x.o or ia<w
Office of tho Adviiior to
tho Oovorniaimt, Bahrain,
lluted, December U6,

From
Dnlrywplo Uoluruve, ICsquire, O.B.K • »
A cl via or to tho Oovornraont of Bahrain
Bahrain.

To
)(1« Brltmmlo Mnjo0ty»o Political Apont,
Bahrain.

Uir,
X have tho honour to onolonc n letter Pddroonod

lo the Chief }.oqu1 Uoproonntutlvo • Bahrain lJ«troloura
Company, ro($i*rdini; tho rov1.nlon of tho oil royalty viith
tht> requeot that you will forward the .Lotter to tho
Company.
B. Tho royalty whioh tho (iovornraont 1» demand­
ing in thin latter in tho ubisolut.o minimum, It la u

rate wninn in lower than the ratos which have rocuntly
boon agreed upon between other oil oomp«nioi» and govern-
monte ia tail* uruu. If it should be yuQiOiitod that tho
Ooven.;aeini ft ml the Caupouy ehouj,d nettle thin matter by

bnrgnialng then the Govoriuoont will revioe ita demand
und v/iil u«k for tormu which aro nlr.iilur to the tome
ugrood upon by othvr oil oompwnloe iu the Gulf, it will
u'ldo auk for a higher minimum number of barrels, per d*y.
;j. The Government rogerds it us a muttor of
primary importance that in addition to tho inoroaood
royalty there should bo tho condition that the nvoruge

dully output should not drop below 156,000 barrels per day.
Thin condition la intended to provent the Company from
reducing tho production of Bahruin oil in order to offaet
the addition*! cost which it would have to pay on an