Page 140 - Historical Summaries (Persian Gulf - Vol II) 1907-1953

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remain a British company and accepted the obligations contained in the Political
Agreement with the Anglo-Persian Oil Company. In 1953 Petroleum Development
(Qatar) Limited changed its name to “ The Qatar Petroleum Company Limited.”
29. In 1937 Petroleum Concessions Ltd. entered into an agreement!1*) with
His Majesty’s Government that whenever they or their associates produced crude
oil in the Persian Gulf area up to a total of 500,000 tons a year they would erect a
refinery on the Arab side of the Gulf unless they could show to the satisfaction of
His Majesty’s Government that this would be precluded by commercial
considerations. When production had reached the stipulated figure in Qatar in
1951 His Majesty’s Government decided that it was not necessary to enforce this
agreement while reserving their right to do so(,fi) but in 1953 the company under
some pressure from the Ruler decided to build a small topping plant in Qatar.(”)
30. In 1938 the company established their camp at Dukhan on the western
side of the Qatar peninsula, and built a jetty at Zikrit. They started drilling and
struck oil in the following year. In 1942 when they were preparing to drill their
fourth well they were asked to close down their operations for the duration of the
war and to plug the wells they had already drilled. Great difficulty was
experienced in obtaining the Ruler’s concurrence in the suspension of operations.
31. The company resumed operations in 1946. In 1939 His Majesty’s
Government had agreed to their constructing a landing-ground for aircraft at
Dukhan but difficulty had been experienced with the Ruler who demanded that his
authorisation should be obtained for any aircraft landing on his territory under the
terms of their concession agreement. In 1946 he was persuaded to grant a blanket
permission for aircraft on the Company’s business to land in his territory and also
to agree to the use by the company of ports other than Dohah, to which they had
previously been restricted by their concession.!48) The company soon after this
began work on the development of a port at Umm Sa’id on the east coast of the
peninsula and constructed a jetty, oil terminals, and a landing-ground there. A
formal opening ceremony was held there in February 1950 at which Shaikh Ali
pontificated but the first shipment of oil had actually taken place in the previous
December. Detailed Regulations have been drafted for this port and forwarded
to the Political Residency with instructions to present them to the Ruler and to ask
him to issue them.O They had not been presented to him by the end of 1953.
32. In 1951 a General Manager was appointed to Dukhan and placed in
charge not only of Petroleum Development (Qatar) Ltd., but also of the other
Iraq Petroleum Company associates in the Persian Gulf. The Chief Local
Representative for all the associates continued to reside in Bahrain for the time
being but was transferred to Dukhan in 1952. A Local Representative for Qatar
has resided at Dohah since 1950. A Local Representative is also maintained at
Bahrain in the office of Petroleum Concessions Ltd., which is now little more than
an administrative unit, for dealing with transients and visitors. The headquarters
of the Qatar Petroleum Company Ltd., as Petroleum Development (Qatar) Ltd.,
is now called, are still at Dukhan but it is intended to transfer them to Umm Sa’id,
which is being developed accordingly.
33. In May 1951 the Ruler asked for an increase in the royalty rate. The
company offered him Rs. 10/- per ton but at the same time made a number of
requests, one of them for an undertaking that if as a result of a settlement of the
boundary dispute with the Saudis Qatar obtained any territory south of the
“ concession line ” (paragraph 27 above) it would be added to their concession area.
This greatly annoyed the Ruler. In October the Company wrote to him agreeing
to make the increased payment unconditionally with effect from the previous
May.(*°) They also discussed their various requests, one of which relating to the
taking over by the Qatar Police of responsibility for guarding the company’s camps
and installations the Ruler had already conceded (paragraph 17 above). The Ruler
accepted the payment offered and wrote a letter to the company agreeing that it
would be undesirable that any other company should be granted a concession in any
area of Qatar south of the concession line and promising to open negotiations with
(°) No. 4 III, O.A.C.
(*') F.O. to Petroleum Concessions Ltd. EA 1536/6 of February 5. 1951
£!> t0 F-U- 7030 of February 4. 1953 (EA 15314/1 of 1953).
( ) No. 1 (c) to (£) III, O.A.C.
(") F.O. to P.R. Despatch 95 of June 17. 1953 (EA 1394/7 of 1953).
( ) P.R. to F.O. 15320/29 of November 5. 1951 (EA 1536/55 of 1951)
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