Page 170 - Historical Summaries (Persian Gulf - Vol II) 1907-1953

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157
bound to start drilling within nine years. This period was extended by six years in
1946 and by a further five in 1951 so that the company are now under no obligation
to drill until 1957.(’°) No drilling has yet been undertaken within the limits of the
State.
84. In 1946 the Ruler agreed to the exploration by a geological party of the
Jabal Faiyah area. The exploration was duly carried out under the protection of
the Bani Qitab who would not allow any of the Ruler’s representatives to
accompany the party.
85. The Regent of Kalba granted a concession to Petroleum Development
(Trucial Coast) Limited on December 20, 1938.(M) It covers the territory subject
to the government of the Ruler of Kalba and its territorial waters. The annual
payment to be made to the Ruler until oil is discovered in commercial quantities i
is Rs. 24,000. There is no obligation to start drilling within a specified period and
no drilling has yet been undertaken. The company entered into a Political i
Agreemcntf73) with His Majesty's Government regarding the concession but it was F
not communicated to the Regent. The Ruler of Sharjah accepted the obligations
devolving on him under this concession when Kalba was reincorporatcd with
Sharjah in 1952(73) (paragraph 23 above). :
86. In June 1949 the Ruler issued his declaration of jurisdiction over the
sea-bed. In 1952 Petroleum Development (Trucial Coast) Limited entered into
negotiations with him for a concession for it but his demands were so exorbitant
that they broke them off. They resumed them in 1953 and in November of that
year, after they had agreed to increase the annual payment due under the
concession of 1937 from Rs. 30,000/- (paragraph 83 above footnote (*’)) to j
Rs. 85,000/-,(T4) he signed a statement confirming that the concession covered all
the sea-bed and sub-soil outside the territorial waters of Sharjah over which his
jurisdiction extended or might extend in the future.C5)

(e) Ajman
87. In 1939 the Ruler granted Petroleum Development (Trucial Coast)
Limited sole exploration rights for a total of six years. This period was
subsequently extended. On January 31, 1951, he granted the company a concession
covering all his territory including its territorial waters and the sea-bed outside
them for a period of 75 years, on a down payment of Rs. 150,000/- with an annual
payment of Rs. 50,000/- until the discovery of oil in commercial quantities and
the usual royalty of Rs. 3 per ton.(76) There is no obligation to drill within a
specified period. A Political Agreement which contained special clauses relating !:
to the sea-bed (paragraph 74 above) was executed between His Majesty’s I
Government and the Company in July 17, 1951.(77)
f.
(/) Umm al Qaiwain
88. The Ruler of Umm al Qaiwain granted a concession to Petroleum
Concessions Limited, with the right of transfer to Petroleum Development (Trucial
Coast) Limited on March 20, 1945.(78) It covers the State of Umm al Qaiwain i.
including its islands and territorial water and provides that when the territorial
limits of the State have been determined the concession will be coterminous with the
limits so determined. There is also a provision relating to the possible formation I
of a Neutral Zone adjacent to the State differing somewhat from that contained ;■
in the Abu Dhabi concession (paragraph 77 above). The annual payment until :
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oil is discovered in commercial quantities is Rs. 24,000. There is no obligation
to start drilling within a specified period and no drilling has yet been undertaken.
The company entered into a Political Agreement with His Majesty’s Government
regarding the concession but it was not communicated to the Ruler.(7J) He did
(7#) No. 9 (a) and (b) IV, O.A.C.
(7‘) No. 11 IV. O.A.C. ■;
(7J) No. 12 IV. O.A.C.
(”) No. 11(c) and («*) IV. O.A.C.
(74) No. 9 (c) IV. O.A.C.
(7i) No. 9 (d) IV. O.A.C.
(") No. 13 IV. O.A.C.
(77) No. 14 IV. O.A.C.
(”) No. 15 IV. O.A.C i1
(") No. 16 IV. O.A.C.

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