Page 239 - Records of Bahrain (7) (ii)_Neat

Petroleum affairs 629

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v/ould bo in tho nature of a loan, In tho cu3G of voluntary
roouotion of production by tho Company for othor reasons
tho guarantood minimum paymont should bo baaod upon the
rovonuo which tho Govcrnmont v/ould havo rocoived had tho

Company continued its oporationa under Good oilfield
manuGoment and practice, Whon talclnGlinto conaldoration
tho guaranteed minimum paymont roforrod to above it should
be remembered that tho Company holds tho exclusive richt
to oxploro, develop and refino oil in Balirain and tho value
to tho Company of its rofinlng rights should be taken into

consideration, Tho Government1s demand for a minimum
annual payment of 100 lakhs in case of force majouro or
210 lakhs if for othor reasons tho Company roducos its
operations takes into consideration not only tho Company's
rights to produco oil In Bahrain but also its rights to
import and refine oil in Bahrain, In the caso of the

higher amount tho Government considors that this sum^
should bo paid if conditions permit tho Company*s oporationa
to continuo bocauso lb has been proved that at loast tills
much cun bo done by tho Company, Bogarding tho lower payi.cnl
tho Government considers that Luo exclusive right of the
Company to hold tho concession, which covora uomo ^',000
square mlloa, is worth to tho Com.any at loast half of

tho amount v/hich, as has already boon domonstratod, tho
Company cun pay to tho Government ovon without dovolopinG
any field.
7. The Government undorstunds that in some pthor rocont

oil acroemonts a clause 1ms boon included providing for
the roviow of conditions in tho ugroomonts if it is
subsequently found that othor Governments receive
substantially moro fuvourablo terms than the terms
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