Page 259 - Records of Bahrain (7) (ii)_Neat

Petroleum affairs 649

Company had mado to find oil in llio seabed, the difficulties
which thoy havo encountered and their present views on
the likelihood of oil being found in this area in the
future.

2. Until 1040 the Company's concession covered an
area of 100,000 acres of Bahrain island, including all
the area in which oil has been found. In that year the
Company acquired an "additional area" consisting of all
other territories which the Kuler then possessed or

might possess in future. The additional land aroas
obtained are insignificant. The important addition is
that of whatever part of the seabed of the Persian Gulf
Bahrain can successfully claim. Her Majesty's Government
have drawn a line fixing the seabed boundary between

Bahrain and Qatar. This has not yet been accepted by the
Kuler of Bahrain, but the Company recognises it as being
the effective boundary of their operations in practice,
other than seismic prospecting which they have carried
out all over the seas around Bahrain. The seabed

boundary between Bahrain and Saudi Arabia has however
"never been settled and has for several years given rise
to argument between Her Majesty's Government and the
Saudi Arabian Government. The present situation is
that a standstill of operations is in force in a large

area north of Bahrain in which Saudi and Bahrain claims
conflict, as described in sir* Kupcrt Hay's letter to
Mr. Pry No. 1081/1/31 of Juno 30, lULl. Tho matter
was inconclusively discussed with representatives of
the Saudi Government at the London Meetings in 10151
/described