Page 111 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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Article 22
(A) The rights and duties established by this Agreement shall cease and
terminate with respect to the defined area or any part thereof in the event that
through arbitration proceedings duly instituted under the terms of the Agreement
of December 23, 1934, by the Sheikh of Kuwait and the Kuwait Oil Company
Limited it should be decided pursuant to the provisions of Article 18(c) thereof
that the said Kuwait Oil Company Limited has a prior right to search for. develop
and exploit the petroleum resources of the defined area or any part thereof.
It is agreed between the Sheikh and the Company that the Sheikh will inform
the Company of any claim that may be raised by the Kuwait Oil Company Limited
or of the institution of arbitration proceedings between Himself and the Kuwait
Oil Company Limited.
All expenses arising from any such claim and all expenses of any such
arbitration to which the Sheikh becomes liable shall be paid by the Company.
(B) It is expressly understood that the rights conferred herein shall cease and
terminate only in regard to such part of the defined area as may be adjudged by
such arbitration to be subject to prior rights of the Kuwait Oil Company Limited.
If foi any reason the claim of the Kuwait Oil Company to prior rights to search for,
develop and exploit petroleum in the defined area or any part thereof should
be withdrawn, the rights herein granted thereto shall be unaffected and shall continue
in full force and effect.
(C) Nothing herein contained shall be construed as preventing or impeding
in any way a direct settlement between the Company and the Kuwait Oil Company
Limited of any claim of the Kuwait Oil Company Limited to the defined area or
any part thereof in the event the two companies shall agree upon a direct settlement
of such issue between them by negotiation, arbitration or any other suitable means.
(D) The Company hereby undertakes to indemnify the Sheikh for any damages
for which He may become liable to the Kuwait Oil Company Limited arising out
of and directly attributable to His execution of this Agreement or the exercise
of the rights of the Company under this Agreement which violate the rights of
the said Kuwait Oil Company Limited. The Company shall be informed whenever
any such claim or claims to damages are made upon the Sheikh.

Article 23
This Agreement is written in English and translated into Arabic. If there
should at any time be disagreement as to the meaning or interpretation of any
clause in this Agreement, the English text shall prevail.

In Witness whereof the parties to this Agreement have set their hands the
day and year first above written.
In behalf of the American Independent His Highness
Oil Company of California, Sheikh Sir Ahmad Al-Jabir As-Subah,
K.C.S.I., K.C.I.E.
Vice-President Ruler of Kuwait

In the presence of: In the presence of:

No. 9

Political Agreement between His Majesty’s Government and the American
Independent Oil Company, relating to No. 8 above, dated September 21, 1949

This Agreement dated the 21st day of September One thousand nine hundred
and forty-nine is made between His Majesty’s Government in the United
Kingdom (hereinafter called “ His Majesty's Government ”) of the one part and
the American Independent Oil Company, a California corporation (hereinafter
called “ the Company ” which expression shall where the context so admits be
deemed to include its successors and/or assignees) of the other part.