Page 140 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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“ Posted Prices” means the prices (expressed in shillings per ton) f.o.b. seaboard
terminal for Qatar crude oil of the gravity and quality concerned arrived at by
reference to free market prices for individual commercial sales of full cargoes and
in accordance with the procedure set out in the Schedule hereto.
“ Border Value ” means the value (expressed in shillings per ton) of Qatar crude
oil at point of export determined in accordance with the procedure under Article 9
hereof which is based on applicable posted prices and takes into account average
realisations from cargo sales and long-term contract sales.
“ Make-up Payment ” shall have the meaning assigned to it in Article 8 (3)
hereof.
Article 2
1. The Sheikh grants to the Company for a period of 75 years from the 6th
day of August 1952 corresponding to the 15th day of Dhi el Qidaa 1371,
(a) the sole and exclusive right within the Concession Area to explore for, drill
for, develop and produce the Substances, and
(b) the right within the Concession Area and elsewhere within the State of
Qatar to transport, dispose of and export the Substances.
2. In the exercise of the right specified in clause 1 (b) above the Company
will have due regard to the prior rights of Petroleum Development (Qatar) Limited
under the Agreement dated the 17th day of May 1935 corresponding to the 14th
day of Safar 1354.
3. Nothing contained in this Agreement shall prevent the Sheikh from
granting any rights to any other person or company to explore or drill for or to
extract or produce or develop anything other than the Substances, or to build or
construct anything within the Concession Area or in or on or over the waters
covering the same so long as such rights do not interfere with the rights granted to
the Company or its operations under this Agreement.

Article 3
On the date of signature of this Agreement the Company will pay to the Sheikh
as consideration for the execution of this Agreement the sum of £231,976 sterling
which sum together with the amount of £131,976 sterling paid to the Sheikh on the
19th day of May 1952 corresponding to the 24th day of Shabaan 1371 shall not be
returnable by the Sheikh under any circumstances whatever.

Article 4
As from the 6th day of August 1952 corresponding to the 15th day of Dhi el
Qidaa 1371 the Company will pay to the Sheikh an annual rental, at the rate of
£75,415 sterling, per annum up to the date of commencement of regular exports of
oil, and at the rate of £37,707 sterling per annum thereafter until the termination of
this Agreement. Such rental shall accrue from day to day and shall be payable
annually in arrear on the 6th day of August of every year.
Article 5
The Company will commence to explore for the Substances within the
Concession Area within nine months from the date of signature of this Agreement
and will commence operations in connection with the drilling of a test well within
the Concession Area within two years from the said date, provided that the
Company has the right to extend the said period of two years by two successive
periods of one year each on payment of the sum of £37,707 sterling for each such
extension.
Article 6
The Company will pay to the Sheikh royalty as follows: —
(a) In respect of each ton of Exported Oil the sum of four shillings and
sixpence sterling.
(b) In respect of each ton of asphalt or ozokerite produced by the Company
and exported the sum of two shillings and three pence sterling.
(c) In respect of each 1,000 cubic feet of natural gas produced by the Company
and sold the sum of two and one quarter pence sterling. V ?