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(2) The Concessionaire shall use his utmost endeavours to increase so far as
reasonably possible with existing facilities the supply of oil and products thereof
for Her Majesty’s Government to the extent required by Her Majesty’s
Government.
(3) The Concessionaire shall with every reasonable expedition and so as to
avoid demurrage on the vessel or vessels engaged to convey the same, do his utmost
to deliver all oil or products of oil purchased by Her Majesty’s Government under
their said right of pre-emption in the quantities, at the time and in the manner
required by Her Majesty’s Government at a convenient place of shipment or at a
place of storage in Dubai to be determined by Her Majesty’s Government. In
the event of a vessel employed to carry any such oil or products thereof on behalf of
Her Majesty being detained on demurrage at the port of loading the Concessionaire
shall be responsible for the payment of the amount due for demurrage according
to the terms of the charter party and/or the rates of loading previously agreed
with the Concessionaire unless the delay is due to causes beyond the control of
the Concessionaire or of any company associated with the Concessionaire in the
operation of the Concession. Any dispute which may arise as to whether the delay
is due to such causes shall be settled by agreement between Her Majesty’s Govern­
ment and the Concessionaire, and, in default of such agreement, the question shall be
referred to two arbitrators, one to be chosen by Her Majesty’s Government (or the
Political Resident) and the other by the Concessionaire, with power to appoint
an umpire in case of disagreement, such arbitration to be held in England and to
be deemed a reference to arbitration under the provisions of the Arbitration Act
1950 as it may be modified by further legislation from time to time or of any
enactment replacing the same.
(4) The price to be paid for all oil or products of the refining or treatment
of oil taken in pre-emption by Her Majesty’s Government shall be either (a) as
specified in a separate agreement or (/>) if no such agreement shall have been
entered into, a fair price for the time being at the point of delivery as the same
shall be settled by agreement between Her Majesty's Government and the Con­
cessionaire, or in default of such agreement by arbitration in the manner provided
by paragraph (3) above. To assist in arriving at a fair price at the point of
delivery the Concessionaire shall furnish for the confidential information of Her
Majesty’s Government, if so required, particulars of the quantities, descriptions
and prices of Dubai oil or products thereof sold to other customers and of contracts
or charter parties entered into for carriage and shall exhibit to Her Majesty’s
Government original or authenticated copies of contracts or charter parties entered
into for the sale and/or carriage of such oil or products thereof.
(5) Her Majesty’s Government shall be at liberty to take control of any works,
plant and premises of the Concessionaire in Dubai, and in such event the Con­
cessionaire shall conform to and obey all directions issued by or on behalf of Her
Majesty’s Government. Compensation shall be paid to the Concessionaire for
any loss or damage that may be proved to have been sustained by the Conces­
sionaire by reason of the exercise by Her Majesty’s Government of the powers
conferred by this paragraph. Any such compensation shall be settled by agree­
ment between Her Majesty’s Government and the Concessionaire or, in default
of agreement, by arbitration in the manner provided by paragraph (3).
In witness whereof Sir Rupert Hay, K.C.M.G., K.C.I.E., C.S.I., on behalf of
Her Majesty’s Government, and Mr. George Heseldin, the Concessionaire, have
hereunto set their hands.
Signed and delivered by the said Sir Rupert
Hay on behalf of Her Majesty’s Govern- W. R. Hay.
ment in the presence of:
William Scott Laver,
Financial Secretary,
H.M’s Political Residency.
Signed and delivered by the said Mr. George
Heseldin, the Concessionaire, in the r G. Heseldin.
presence of:
Leslie Stanhope Maxwell,
Fields Manager,
Petroleum Development
(Qatar) Limited.