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acceptance of them conveyed in your letter No. 2 dated the 23rd Muharram 1357
(corresponding to the 26th March 1938) (No. 10 (b)), have been communicated
to Petroleum Concessions, Limited, and that the Company formally confirm their
acceptance of these arrangements.
2. I am now to express to you on behalf of His Majesty’s Government their
approval of the Agreement concluded by you on the 17th September 1937 with
Petroleum Concessions Limited (No. 9).

No. 11

KALBA OIL CONCESSION
Concession Agreement between Petroleum Development (Tracial Coast) Limited,
and the Regent of Kalba, dated December 20, 1938
In the name of Allah the Compassionate the Merciful
This Agreement was concluded at Ajman on the 27th day of Shuwv/al
1357 A.H., corresponding to the 20th day of December 1938 A.D., between His
Excellency Shaikh Khalid bin Ahman bin Sultan, Regent of Kalbah (hereinafter
called “ the Shaikh ”), of the one part, and Mr. Stephen Hemsley Longrigg,
General Manager of Petroleum Development (Trucial Coast) Ltd. (a British
Company registered in London), hereinafter called “ the Company,” of the second
part and agreement has been reached as follows:

Article 1
The area to which this Agreement applies is the territory subject to the govern­
ment of the Shaikh of Kalbah and under his administration, and the territorial
waters of that territory.
Article 2
The period of this Agreement is seventy-five solar years from the date of
signature.
Article 3
The Shaikh hereby grants to the Company the exclusive right to explore, search
for, drill for, produce and win mineral oils and their derivatives and the substances
similar to them, and the exclusive right to the ownership of all such substances as
it may extract and free disposal of them both within and outside the territory.

Article 4
The Shaikh undertakes to offer to the Company all assistance in its relations
with other Rulers and neighbouring tribes with a view to securing the free access
and movement of the Company in their territories, and to help the Company in all
its operations in Oman up to the limits of his ability, at any time the Company may
require this.
Article 5
In consideration of the rights granted by the Shaikh under this Agreement the
Company shall pay to the Shaikh:
(a) on signature of the Agreement, Rs. 60,000 within 20 days of the date of
signature.
(b) Rs. 200,000 within a period of 60 days from the date of discovery of oil in
commercial quantities. The expression “ commercial quantities ” means
the acquisition of a well or wells capable of producing quantities of oil
not less than 2,000 tons per day of pure oil for a period of 30 days
continuously.
(c) Rs. 24,000 at the end of each year from the date of signature of this Agree­
ment until the discovery of oil in commercial quantities.
(d) At the end of each year following the date on which the Company
announces the discovery of oil in commercial quantities, a sum of
Rs. 90,000, or three rupees per ton of oil extracted, whichever amount
is the greater.
ie) Two annas per 1,000 cubic feet of natural gas produced and sold.