Page 235 - Records of Bahrain (7) (ii)_Neat

Petroleum affairs 625

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tho Company aecoptod only his proposal for a 50-5*0
profit sharing arrangement, It agreed that payment
should ho in starling hut that only ono anna por barrel

should bo paid on Imported crudo oil, torsoly refusing,
and not evon cominonting on, his other demands. Tho
dotails of this 50-50 arrangomont liavo not yot boon fully
di3oussod and various mat tors connoctod with it will
require considoratlon, such as overhead chargos on crudo

production and tho quastion of a Depletion Charge, Tho
Government boliovos that tho exploration costs of tho
prosent crudo production must already have boon adequately
offset by tho Company»s profits ovor a long terra of years
and that the cost of any new exploration should bo at the
expense of tho Company until ouch timo as now production

has been established. Those and other matters relating
to the 50-50 agreement will have to bo agreed between the
Government and tho Company,
h. Payments made by the Company to tho Government}

provided for In the original contract, wore in compensation
for rights which wore granted to tho Company at tho time
of the original, concession and tho proposed 50-50 arrango­
mont applies only to the profits from crude oil operations,
it does not include any compensation for tho many valuable
rights and privileges which the Government has granted to

the Company which contribute towards tho considerable
profits which tho Company makes from its refining and other
operations. If there was no refinery in Bahrain tho
Government would, presumably, rocoivo tho same profits
under the 50-50 arrangomont. Tho Government realizes

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