Page 267 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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Petroleum Concessions Limited has obtained concessions dated the
w»Tm°!£W«;

s.'fSsasr.'iTs 5-2; respect ofthe -d petroleum Concessions Limited to the Company, the Company
assigned by in.th Hig Majesty’s Government as follows: —
of a state of national emergency or war (of the existence of either
hUS agr u
J? ithHfs Majesty’s Government shall be the sole judge) His Majesty s Govern-
direcr'the^Sul'tanate right^o^^51311^- of which His m j / . ht of pre-emption of all the oil produced in the Sultanate
^Muscat and Oman excluding Gwadur in accordance with the following terms,
R .. UncJer the circumstances, will he grievances Pproach
Britanmc M.,eSlys Government (or rSSSo poiM
10 our friend His nan\n wk Majesty’s Government shall have the right of pre-emption of all crude
•, under the Concessions granted by the Sultan to the Company and
°i ffp products thereof and shall have the right to require the Company to the
* Vof anv refining capacity it may have in the Sultanate of Muscat and Oman
fX produce oil fuel that shall comply with the Admiralty specifications at the time
rovided that Muscat oil be of a suitable kind and quality for this purpose.
(c)
PF (2) The Company shall use its utmost endeavours to increase so far as
Letter dated July 24, 1939, from the Political Agent Muscat mm c , reasonably possible with existing facilities the supply of oil and/or products thereof
for the Government to the extent required by the Government.
(3) The Company shall with every reasonable expedition and so as to avoid
demurrage on the vessel or vessels engaged to convey the same, do its utmost
His Majesty’s Government’s Approval f * 5 . confirming
ot the Concession Agreement of to deliver all oil or products of oil purchased by the Government under their
June 24, 1937 said right of pre-emption in the quantities at the time and in the manner required
by the Government at a convenient place of shipment or at a place of storage
in the Sultanate of Muscat and Oman to be determined by His Majesty’s Govern­
ment. In the event of a vessel employed to carry any such oil or products thereof
! on behalf of His Majesty being detained on demurrage at the port of loading the
Persian Gulfto (SSaf,"f&S, (Hf Pomade.,'in * Company shall pay the amount due for demurrage according to the terms of the
the
charter party and/or the rates of loading previously agreed with the Company
unless the delay is due to causes beyond the control of the Company. Any dispute
(a) that, in the light of the criticism made in Your Highness’s letter referred which may arise as to whether the delay is due to causes beyond the control of
to above, Article 4 of the Agreement between His Majesty’s Govern­ the Company shall be settled by agreement between His Majesty’s Government
ment and the Company has been amended, by means of an exchange and the Company, and, in default of such agreement, the question shall be referred
of letters with the Company and after consultation with Your Highness, to two arbitrators, one to be chosen by His Majesty’s Government (or the Political
so as to omit the four opening words, namely, “ The local Resident) and the other by the Company, with power to appoint an umpire in
employees of”; case of disagreement, such arbitration to be held in England and to be deemed
(b) that the Company have now confirmed their acceptance of the arrange­ t0 Arbitration under the provisions of the Arbitration Acts, 1889 to
ments embodied in my letter No. C/155 dated the 2nd November, 1938, tt > Av*ndJ3 Vict* c< 49; 24 and 25 Geo- V* c- 14> of the Parliament of the
:! to Your Highness; umted Kingdom, or any statutory modification or re-enactment thereof for the
(c) with reference to the undertaking given by Your Highness’s predecessor time being in force.
on 10th January, 1923, that having regard to the arrangements now nil Jul ^he price t0.be paid for aI1 oil or products of the refining or treatment of
made between His Majesty’s Government, Petroleum Development in a ln Pre-emption by His Majesty’s Government shall be either (a) as specified
(Oman and Dhofar) Ltd. and Your Highness, His Majesty’s Govern­ a fair nrkff ag.ruee"}ent °r. ^ lf no such agreement shall have been entered into,
ment have no objection to the concessions granted by Your Highness by apreer^nf 6 tlm|beixnS .at th,e P01ut of delivery as the same shall be settled
to Petroleum Concessions Ltd. on the 24th June, 1937. of such SmenThv 2k-?^eSty-S Government and the Company, or in default
' sub-clause^ ement by arbltration in the manner provided by the last preceding
furnish forlhe S a- ? f-aiJ price at the point of delivery the Company shall
squired!^particulars oMh^1 mta™**°* of His Majesty’s Government, if so
products sold to other dfeSTptl0nS and prices of Muscat oil or
No. 3
carriage and shall exhi/nd °> cbarters or contracts entered into for
Pre-emption Agreement between His Majesty’s Government and Pe^ c°P'cs of contracts o^chaS^ ^?jestyts Government original or authenticated
of such oil or products. " 1 parties entered into for the sale and/or carriage
Development (Oman and Dhofar) Limited, dated Septe ’ ^
P,ant and pr^lsesyof ^hpnnment sha11 be at liberty to take control of the works

SSSrfKinldo™ (tardUi called “ ^ ^ fc atly loss or damase rnmuent- ComPensation shall be paid to the Comoanv

* See the footnote on p. 257.
subsidiary Company) of the other part.