Page 132 - Records of Bahrain (6)_Neat

120 Records of Bahrain

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iu dono iu uouo other oil producing 001111 trios, Hovmvor
thin method Imu boon dropped iu favour of the uluplor nyu-

thoi» of on iuurouuo purton in the royalty, A ulmro in tlio
•il or u ulinro iu the profitu vain rejpjrdod an attrnotivo
by Hill HiuLmosa tho Hulor but ori conuldorntlon it vain not
found to bo practicable.
Tho Oovornuout boHeves that tho Bahrain petroleum

Company hen lout; uinoo puuuud tho point ot which ito initial
inveutnumt lmu boon roturned and ltn opnrutionu for noroe yeere
have boon free from unuuual rink or hoavy inveutroonta. It
would not bo ronuonnblo for tho Company to ar^ue U(juinot pay-
1 h(j tho propoood royalty by pointing out how muoh It in upend­

ing or iQiiy upond on now oporutiono in tho udditlonnl area or
in doop drilling. Tho Oovornuout bauou itn rnto of rovonuo
u])on oil which iu Unown to oxlut.
10. Tho Uovornwont granted n uole and oxcluuivo oon-
cooHion to tho Company tharoby foroijoinij; the pouuiblo and

uouul udvuntu({OH of competition iu tho boliof, which it utill
hoida, tliat an uquitable divinion of oil rovouue can be
ooourud through orderly adjuutuontu of conoouoion torrou
at tho periodu uiiruod to. Tho rnto of royalty hero propoued
iu not more than vihat tho Government boliovoswould moult

from ordinary competitive of fern if competition hod been
pouuiblo.
11. Tho Bahrain Uovorjuaont would prefer tho wottor of
tho roviood oil royalty to bo oottlod hero and now but if tho
Company rofuunu to ugreo to the propouul tho Government iu

prepared to have tho unttor roforrod to arbitration.
I huvo tho honour to be,
Oir,
Your Obodlent Servant,

Advioor to tho Qovormaont.