Page 274 - Records of Bahrain (7) (ii)_Neat

Records oj Bahrain
664
it
British Uesj.doiioy,
: \ \
Ibjl/P./lVbb Bahrain. b
i
; February iii'i, l'J'db.

i
! fiI ft W

3w$ UIIHI 3i
•j; used tho occasion of Boilly's viijiU
humifor an exploratory discussion with l.lio
Bahrain potroloum Company, represented by
Messrs. Barkhurst and skinner, on the question
of their payments to tho Killer of Bnliram, ami
whethert 110 larms of Uio Persian sottlouunt would,
in accordance with their letter or Ducembur o,
lCoL:, force them to reconsider their ov/n
concession payments.
a. Tlio method of determining tlio salu price
of Uio crude oil produced from Uio Bahrain oil
conoussivin i:j described in a letter dated
Bucouiboi* u, lv)‘b£, from iiAl'CO to Uio Puler. In
. brief. l.liu price accepted by Uio Company in tlio
1 v/uighted average of Uio prices at winch foreign
I cruuu oil in brought into and refined in Bahrain,
I and in purchased F.O.B. pipelines or loading points
in Uio Persian Gulf. As you know, Uio bulk of
13APCX) nurelifiaos of crude oil are froiiiAUAhlCO tuid
since AisuiCO have settled .v/ith the Saudi Arabian
Govern..iont that, at least up In October 1'Jb'd, the
price which they will accept for the purpose of
calculating tlio bO/bO profit shall be tlio posted
price less a small discount BAPCO have taken
this price as. applicable to the oil which they
purchased from APAMCO over that period. As a
consequence the Puler's share of profit was very
greatly increased and in November 1953 lie was given
a cheque for about £1 million which represented
50/j of the difference between the former price on
which his share w.s calculated and the new price.
Mr. Gldnnur said that the sales of oil made after
tlio new agreement would probably bo at posted
prices arid that automatically the sale price of
tlio crude eil producvid in Bahrain would reflect
the n.A'/ agreements, and the Paler would .be getting
a comparable price l,o Saudi Arabia, Persia, or any
ol the Persian Cull sheikhdoms from whom BAPCO
bought their crude oil for refining. This being '
li. A.C. Pry i.vHj., O.B.Ifi., /so
Pastern ijupartmont,
Poreign Office ;;.v». 1.