Page 198 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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No. 9
SHARJAH OIL CONCESSION
Concession Agreement between Petroleum Concesssions Limited and the Ruler of
Sharjah, dated September 17, 1937, with Schedule No. 1 of the same date
In the Name of God the Merciful.
This is an Agreement made at Sharjah, Arabia, on the Seventeenth day of
September 1937, corresponding to the Eleventh day of Rajab 1356 between
His Excellency Shaikh Sultan din Sagar in the exercise of his powers as Ruler
of Sharjah, 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 Sharjah (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 Sharjah including
all islands and territorial waters appertaining thereto (hereinafter referred to as
“ the State ”) being all that territory included in the Shaikhdom of Sharjah.
The Sheikh agrees that when the territorial limits of the State of Sharjah have
been determined the area covered by the Concession will be coterminous with the
limits so determined.
(b) The area within the State of Sharjah at present being used by Imperial
Airways, Limited, and the Royal Air Force as an aerodrome, the buildings thereon,
and all concerned with that area is entirely excluded from and 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 substances ”)
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).
(b) 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.
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