Page 207 - Historical Summaries (Persian Gulf - Vol II) 1907-1953

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He arrived in July but proved unsatisfactory. He made very little progress in the
enlistment of recruits and towards the end of the year he absconded. After his
disappearance the prospects of raising the required force became brighter.
(b) Dhofar
,
63. The Sultan granted a concession for Dhofar to Petroleum Concessions
: Ltd. at the same time as he granted them the concession for Muscat and Oman and
: the terms of the two agreements were identical except that the payments under the
Dhofar agreement were smaller and it had attached to it an “ amendment ” covering
! a number of minor matters peculiar to Dhofar. Its history down to 1944 is the
same as that of the Muscat and Oman concession (paragraphs 59-60 above) and
the Political Agreement and the exchange of letters with the Sultan cover both
concessions jointly.
64. The company carried out a geological survey of a limited area round
Salalah in 1938 with disappointing results. After the war the Sultan became
impatient at the company’s apparent neglect of his favourite province and at the
end of 1946 they sent a representative to discuss further exploration with him. A
more extensive survey was carried out in 1948 with similar results. When the Sultan
learnt of this he pressed the company to abandon the concession if they did not
propose to continue the search for oil. After a long delay due to the necessity of
obtaining the consent of all their components they finally gave notice on December
20, 1950, of their desire to terminate their concession six months from that date,
which the Sultan at once accepted.Cv) He then asked the United States Consul
General at Dhahran to find an American company who would be willing to take
up a concession. This it appears the Consul General was unable to do and in
1953 the Sultan made an approach on the subject to Mr. Wendell Philipps an
American engaged upon archaeological research in Dhofar. In June 1953 he
informed the Political Resident that he had granted to the Phil-Pryor Company,
which was a concern belonging to Wendell Philipps and not an oil company, a
concession free of cost for exploration only for three years. This was to be passed
on to any oil company willing to take it up. The terms of an operating concession
had been discussed but such a concession would only be granted later if occasion
arose. The City Services Company of America have since sent geologists to Dhofar
and are reported to be interested in certain areas and to be sending out drilling
apparatus.
(c) Gwadur
65. At the end of 1932 the Burmah Oil Company an entirely British concern
and Indian Oil Concessions Limited which was half British and half American began
to show an interest in Gwadur. In January 1938 both companies were informed
by His Majesty’s Government that there was no objection to their negotiating with
the Sultan provided that their applications to him were submitted through the
Political Agent and the latter was kept in touch with all stages of the
negotiations^100) The companies were also told that the Sultan was under an
obligation not to grant a concession without the approval of His Majesty’s
Government, that any oil concession obtained was subject to such approval, and
that in deciding whether to grant it or withhold it His Majesty’s Government would
have amongst other things to take into consideration the difficulties arising from
the fact that the boundary between Muscat and Kalat territory had not been
demarcated. When the matter was discussed with the Sultan in London he agreed
that the demarcation of the boundary would be necessary but insisted that this
matter should be arranged between him and the Government of India and not
direct between him and the Khan of Kalat. He went on to say however that he
had decided to abandon the negotiations because of the necessity for the approval
of the Government to any concessions granted.(l01) He subsequently changed his
attitude on the latter point and in July promised to stipulate in any concessions
which he granted that no operations would be undertaken until the frontier had
been demarcated.(l02) Both companies applied to the Sultan for a concession and
negotiations continued throughout 1938 and into 1939. The Sultan appeared to
favour Indian Oil Concessions Limited and there was some discussion in olncia
circles whether His Majesty’s Government should use their influence in an attempt

(*•) P.R. to F.O. 1533/3/51 of January 18, 1951 (EA 1536/5 of 1951).
('«) i.o. to F.O. P.Z. 459/38 of February 1, 1938 (E 589/137/91 of 1938).
f'01) I.o! to F.O. P.Z. 3189/38 of May 12, 1938 (E 2743/137/91 of 1938).
(I#a) I.O. to F.O. P.Z. 5008/38 of July 19, 1938 (E 4288/137/9 of 1938).