Page 262 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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Article 5
8. If on the expiration of the Option Period of Five Years the Company
require an extension, the Company may apply to the Sultan and the Sultan will
grant an extension for a further period of Two Years on the same terms as the
original Option Period but with an initial payment of Rupees 10,000. Rupees
Ten Thousand.
9. After the discovery of oil the Company will submit to the Sultan a plan
showing the proposed lay-out of oil lines, water lines, gas lines, telegraph lines,
tank farms, refineries machine shops and buildings showing the aggregate number
of acres to be occupied in the area to be known as the Leased area.
10. All payments mentioned in these agreements as being monthly payments
are to be paid in half-yearly instalments in advance.
Signed at Muscat on the 24th June, 1937.
(Sgd.) B. H. Lermitte. (Sgd.) Sa’id bin Taimur.

In the presence of In the presence of
(Sgd.) R. P. Watts, (Sgd.) R. P. Watts,
Political Agent and Political Agent and
H.B.M.’s Consul. H.B.M.’s Consul.

No. 2
Political Agreement between His Majesty’s Government and Petroleum Develop­
ment (Oman and Dhofar) Limited, relating to the Oil Concession
Agreement of June 24, 1937, dated September 27, 1938
This Agreement dated the Twenty-seventh day of September One thousand
nine hundred and thirty-eight is made between His Majesty’s Government in the
United Kingdom (hereinafter called “ His Majesty’s Government ”) of the one
part and Petroleum Development (Oman and Dhofar) Limited (hereinafter called
" the Company ” which expression shall where the context so admits be deemed to
include its successors and/or assignees and shall also be deemed to include any
subsidiary Company) of the other part
Whereas by two Agreements both dated the Twenty-fourth June, one thousand
nine hundred and thirty-seven, Petroleum Concessions Limited has obtained
concessions from His Highness the Sultan of Muscat and Oman (hereinafter
called “ the Sultan”): (A) in respect of the Sultanate of Muscat and Oman
excluding Dhofar and Gwadur (B) in respect of the District called Dhofar,* and
whereas in accordance with Article 23 of the aforesaid Agreements the said con­
cessions have been assigned by the said Petroleum Concessions Limited to the
Company, the Company has agreed with His Majesty’s Government as follows: —
1. The Company shall be and remain a British Company registered in Great
Britain and having its principal place of business in Great Britain, and its Chairman
shall at all times be a British subject.
2. Neither of the aforesaid Concession Agreements shall be transferred by the
Company to any other person or corporate body without the prior consent in
writing of His Majesty’s Government. It is understood that His Majesty’s Govern­
ment will not in any case give their consent to the transfer of the Concession
Agreements to any person except on the condition that the transferee shall be and
remain a British Company registered in Great Britain and having its principal
place of business in Great Britain, and its Chairman shall at all times be a British
subject.
3. In exercising their rights under Article 16 (b) of their Concession Agree­
ments to import skilled and technical employees the Company shall not employ
persons of other than British Nationality without the consent of the Sultan and
of His Majesty’s Government (or the Political Resident in the Persian Gulf).
• The Dhofar concession was terminated with effect from June 20, 1951, after which the company
changed its name to Petroleum Development (Oman) Limited.
46467 2 M 2