Page 176 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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No. 5

DUBAI OIL CONCESSION
Concession Agreement between Petroleum Concessions Limited and the Ruler of
Dubai, dated May 22, 1937

In the Name of God the Merciful.
This is an Agreement made at Dubai, Arabia, on the Twenty-second day of
May, 1937, corresponding to the Eleventh day of Rabi-Awwal 1356 between
His. Excellency Shaikh Said Bin Maktum Al-Hasher in the exercise of his powers
as Ruler of Dubai, Arabia, on his own behalf and on behalf of and in the name
of his- heirs and successors in whom is or shall be vested for the time being the
responsibility for the control and government of the State of Dubai (hereinafter
called “ the Shaikh ”)• of the one part and Petroleum Concessions Limited, a
Company registered in Great Britain under the Companies Act, 1929, its successors
and assigns (hereinafter called “ the Company ”) of the second part.
Article 1
(a) The area to which this Agreement applies is the State of Dubai including
all islands and territorial waters appertaining thereto (hereinafter referred to as
“ the State ”) being all that territory included in the Shaikhdom of Dubai.
The Shaikh agrees that when the territorial limits of the State of Dubai have
been determined the area covered by the Concession will be coterminous with the
limits so determined.
(b) But the Company shall refrain from working or entering for the present
into the area upon which the town named Hatta A1 Jabaliyah is located until the
Shaikh grants the Company permission to do so.
(c) The area in the Dubai Khor surveyed by Imperial Airways Limited and all
concerned with that area is entirely excluded for the purposes of this Agreement.
Article 2
The period of this Agreement shall be 75 calendar years from the date of
signature.
The expression year, month and day used in this Agreement shall mean what
is consistent with the English solar calendar and not any other. Further, the
weights mentioned in this Agreement shall be reckoned on the English ton of
2,240 lbs.
Article 3
The Shaikh hereby grants to the Company the exclusive right to explore
search for drill for produce and win natural gas asphalt ozokerite crude petroleum
and their products and cognate substances (hereinafter referred to as “ the sub­
stances ”) within the State, the exclusive ownership of all the substances so
produced and won, the right to refine transport sell for use within and without
the State or for export and to export or otherwise deal with or dispose of the
substances, and the right to import export pump ship or otherwise transport the
substances across or to any country or place at the Company’s discretion and the
right to do all things necessary for the purpose of these operations.

Article 4
If hereafter any neutral zone is created adjacent to the territory of the State,
wherein the Shaikh shall have a co-equal and joint interest, the Shaikh hereby
agrees to grant to the Company an oil concession over such neutral zone on terms
to be agreed between the Shaikh, the Company and the joint ruler of such neutral
zone.
Article 5
In consideration of the rights granted by the Shaikh by this Agreement the
Company shall pay to the Shaikh: —
(a) on signature of the agreement Rupees 60,000 (Sixty thousand).
ib) Rupees 200,000 (Two hundred thousand) within a period of sixty (60)
days from the date upon which the Company declares in writing to the
Shaikh that substances have been discovered in commercial quantities.
46467 z 2