Page 291 - Records of Bahrain (4) (i)_Neat

The oil industry, 1925 279

II
PART 1

BAHRAIN
No. 1

Concession Agreement between the Eastern and General Syndicate Limited and
the Ruler of Bahrain, dated December 2, 1925—<ns revised up to
January 12, 1934)
Agreement between Shaikh Hamad Bin Shaikh Issa At. Khai.ifaii, Shaikh
of Bahrein of the one part, hereinafter called "the Shaikh," and The Eastern
and General Syndicate Limited of the other part, hereinafter called " the
Company."

Article I
The Shaikh grants to the Company by these presents an exclusive exploration
licence for a period not exceeding two years, except as provided for in Article II,
from the date of this Agreement whereby the Company shall be entitled throughout
the whole of the territories under his control to explore and search the surface
of such territories to a depth not exceeding 20 feel for natural gas, petroleum,
asphalt, and ozokerite, and to enjoy the privileges set out in the first schedule
to this Agreement; and he undertakes on behalf of himself and his successors
to grant to the Company the further exclusive licences and privileges set
forth below.

Article II
The exploration licence referred to in the preceding Article may be extended
for a further period of two years on the Company’s showing to the satisfaction
of the Shaikh, acting on the advice of the Political Resident in the Persian Gulf,
that such extension is justified.

Article III
The Shaikh hereby undertakes on behalf of himself and his successors to grant
to the Company, on application, either after the expiry of or during the course
of the period of two years mentioned in Article I or any extension or renewal
thereof as provided for in Article II, a prospecting licence for a further maximum
period of two years, over areas to be selected by the Company with the approval
of the Shaikh and with the cognizance of the Political Resident in the Persian
Gulf. Under the terms of this licence the Company shall enjoy the privileges
set out in the second schedule to this Agreement.

Articlu IV
The prospecting licence referred to in the preceding Article may be extended
for a further period of two years on the Company’s showing to the satisfaction
of the Shaikh acting on the advice of the Political Resident in the Persian Gulf,
that such extension is justified, provided that no extension shall be granted unless
the Company have already erected suitable drilling plant and carried on drilling
operations continuously for at least three months in the original period.

Article V
The Shaikh hereby undertakes on behalf of himself and his successors, to
grant to the Company on the expiration of the prospecting licence or earlier if
application therefor is made by the Company, a mining lease over an aggregate
area not exceeding 100,000 acres divided into not more than three blocks which
shall be selected by the Company on the terms and in the form of the lease attached
as the third schedule to this Agreement.
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