Page 151 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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(d)
Letter, dated March 25, 1954, from Shell Overseas Exploration Company to the
Ruler of Qatar about Computation of Income for the purposes of the Qatar
Income Tax Decree*

My Company undertakes in computing its income for purposes of the Qatar
u1^0 app,y as thc totaI of the deductions allowable under
Article 4 of the said Decree in respect of any year or period thc total of its costs
and expenses for thc same year or period as finally determined under Article 9
Clause 3 (a) of its Agreement with Your Excellency dated 29th November, 1952.
My Company understands that Your Excellency agrees to accept the total of such
costs and expenses as the total of thc said deductions to be allowed in computing
income under thc Qatar Income Tax Decree.
I should be grateful if Your Excellency would be good enough to confirm
that the above understanding is correct.
* See Qatar Queen’s Regulation No. 1 of 1954.

(C)
Letter, dated March 28, 1954, from the Ruler of Qatar to Shell Overseas
Exploration Company replying to (d) above
I refer to your letter No. RT/1 dated 25th March, 1954.
I am satisfied that your company undertakes in computing its income for the
purpose of the Qatar Income Tax Decree to apply as the total of deductions
allowable under Article 4 of the aforementioned decree, in relation to any year
or period the total of its costs and expenses for the same year or period as finally
determined between us under Article 9, clause 3 (A) of your agreement with me,
dated 29th November, 1952, and I do further confirm that your company’s under­
standing, that I agree to accept the total costs or expenses of such a nature as
being the total aforementioned deductions allowable when computing the income
under Qatar Income Tax Decree, is a true understanding, provided the total costs
and expenses are identical to what the agreement dated 29th November, 1952, sets
forth and in accordance with the established procedures.

No. 7
Political Agreement between Her Majesty’s Government and Shell Overseas
Exploration Company Limited Relating to the Off-Shore Oil Concession
Agreement of November 29, 1952 (No. 6 above), dated December 15, 1952
This Agreement dated the 15th day of December one thousand nine hundred
and fifty-two, is made betewen Her Majesty’s Government in the United Kingdom
of Great Britain and Northern Ireland (hereinafter called “ Her Majesty’s Govern­
ment ”) of the one part and “ Shell ” Overseas Exploration Company Limited
(hereinafter called “ the company ” which expression shall include its assigns) of
Whereas upon the Company concluding with the Shaikh of Qatar (hereinafter
called “ the Shaikh ”) an oil agreement (hereinafter referred to as “ the
Concession ”) for the exploitation of the oil resources of the seabed and subsoil
of Qatar, certain responsibilities devolve on Her Majesty’s Government.
The Company has agreed with Her Majesty’s Government as follows, not­
withstanding anything contained in the Concession: —
1 The Company, any transferee Company and any subsidiary or operating

Government, be and remain a Company incorporated in Great Britain and having
its principal place of business in Great Britain.