Page 255 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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PART V

MUSCAT AND OMAN

Muscat and Oman OH Concessions
Concession Agreement between the Sultan of Muscat and Oman and Petroleum
Concessions Limited, dated June 24, 1937
In the Name of God the Merciful.
This is an Agreement made at Muscat on the twenty-fourth day of June 1937,
corresponding to the ? ? ? date ? ? ? ' between Sultan Saiyid
Said bin Taimur, Sultan of the Sultanate of Muscat and Oman, South-Eastern
Arabia, in the exercise of His Highness’s Powers as Ruler of the Sultanate of
Muscat and Oman on his own behalf and on behalf of and in the name of his
heirs and successors (hereinafter called “The Sultan”) of the first 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.

Articlf 1
{a) The area to which this Agreement applies is The Sultanate of Muscat
and Oman including all Islands and Territorial Waters appertaining thereto, but
excluding Dhofar and Gwadur, (hereinafter referred to as “ The Leased Area ”)
and being all that Territory within the boundaries of The Sultanate of Muscat
and Oman.
(b) Nothing in this Agreement shall be read as restricting—in any way—the
right of the Sultan to grant to others a lease or permit over the surface rights of
an area or areas to be used for the purpose of constructing an aerodrome and
appurtenances thereto for either aeroplanes or seaplanes; and the surface rights
over such area or areas if and so granted shall be entirely excluded for the purpose
of this Agreement.
Article 2
The period of this Agreement shall be 75 (Gregorian) Calendar years from the
date of signature.
Article 3
The Sultan hereby grants to the Company for a period of five years from
the date of signature of this Agreement (hereinafter referred to as “ The Option
Period”) 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 Leased Area.

Article 4
On signature of this Agreement the Company shall pay to the Sultan the
sum of one lac of rupees (Rs. 100,000).
During the Option period of years five the Company shall pay to the
Sultan the sum of rupees Five thousand a month making a sum of
rupees Three hundred thousand in all.
The first payment shall be made within 30 days after the date of signature
of this Agreement, and subsequent payments on the first day of each calendar
month thereafter.
Article 5
The Company may at any time during the Option period terminate this
a orppment but in such event the Company shall pay to the Sultan any balance
tstanding of the full amount specified in Article 4 (rupees 300,000).

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