Page 238 - Records of Bahrain (7) (ii)_Neat

628 Records of Bahrain

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from refining and other operations, As a compensation
for the Company’s right to Import crudo oil into Balirain

and to rofino it in Bahrain tho Government asks for a
payment of 2 annas pox1 barrol on all crudo oil imported,
On tho avorago quantity of crudo oil imported ovor a
period of several years this payment would amount to
about 60 lakhs of rupees a year, approximately tho amount

of tho voluntary payment made by the Company 3inco last
Juno, which tho Government has regarded, though this was
not spociflod by the Company, as an interim compensation
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for the rLght to import and rofino crude oil,
6, Tho 50-!J0 arrangement onsuros for the Government

equitable compensation from crude oil production under
conditions of high production and high profits, but it
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provides no assurance in the event of the volume of pro-*
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duction or the profit per ton being substantially reduced,
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A reduction might rosult from force majouro, such as tho
doolino of tho oil resorvoir or other physical roasons
beyond tho Company’s control or from a vountary act of
tho Compuny basod upon 'commercial considerations which
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might appear justifiable to tho Company but which would
not necessarily appear justifiable to tho Government, In

either case the Government is ontitlod to a guax’untocd
annual minimum payment, for a specified poriod, which
would not nocessarily bo tho same in both cases, in com­
pensation for tho Company's continuing righto under the
concession, regardless of tho actual amounts of production
ox* profit. In the caso of foi’co ina jcure tho Government
: considers that it is entitled to a minimum payment basod

on tho value of tho concession to the Company under tho
prevailing circumstances, this puymerit, it is realised,

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