Page 35 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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Article 3
The Shaikh and the Company have now agreed
lhc Company shall pay to the Shaikh Four lakhs of Rupees
(Rs. 4,00,000) on or before this Deed is executed and
(b) that the rights and privileges granted by the Shaikh to the Company by
the Lease and the First Supplemental Deed shall extend and apply to the whole of
the Shaikh’s present and future dominions, and
(c) that there shall be such further modifications, extensions, enlargements
and other alterations of and to the Lease and the First Supplemental Deed as are
contained in this Deed.
Article 4
(а) The Shaikh hereby grants to the Company on behalf of himself and his
Successors for the period of fifty-five years from the date of this Deed, the exclusive
right to prospect and drill for, extract, treat, refine, manufacture and deal with
petroleum products, naphtha, natural gases, tar, asphalt, ozokerite and other
bituminous materials within the Shaikh’s present and future dominions.
(б) The Shaikh hereby further grants to the Company on behalf of himself
and his Successors for the same period the exclusive right to construct and operate
refineries and storage tanks within the Shaikh's present and future dominions and
also the right but not the exclusive right to construct, erect and operate pipelines,
railways, wharves, jetties, boats, tramways, roads, buildings, machinery, telephones,
telegraphs, radio and other facilities and apparatus of all kinds in any part of the
Shaikh’s present and future dominions so far as may be necessary for the purpose
of its business except that radio equipment may not be used to transmit messages
beyond the limits of the concession; and
(c) The rights granted by either subclauses (a) or (b) of this Article shall not
include the exclusive right to sell or transport petroleum products within the
Shaikh’s present and future dominions, and
{d) The foregoing grants of rights by the Shaikh and his Successors to the
Company shall operate by way of confirmation and enlargement of the grants of
rights existing under or by virtue of the Lease as altered by the First Supplemental
Deed and this Deed.
Article 5
(a) The Company will pursue with diligence and without unnecessary delay,
geological work within the Additional Area, including structure drilling and
geophysical work, if necessary, and
(b) The Company will drill test wells for oil wherever in its judgment
geological evidence warrants, commencing operations on the first test well not
later than two and one-half years from the date of this Deed, if a favourable area
has been found, and
(c) If oil is discovered within the Additional Area the Company will continue
drilling further wells until oil in commercial quantities, that is of a daily average
of 500 tons for a period of 30 consecutive days produced in accordance with good
oilfield practice, has been obtained, or until the area is no longer deemed
favourable, and
(d) Upon discovery of oil in commercial quantities the Company shall
continue drilling within the productive area until the requirements of good oilfield
practice have been met, this obligation however being subject to suspension during
such times as the wells then drilled within the Additional Area are capable of a
total daily average of at least 1,000 19ns for a period of 30 consecutive days of oil
produced in accordance with good oilfield practice.

Article 6
The royalty provisions of Article VII of the Lease, as modified by Article
(B)-(3) of the First Supplemental Deed, shall as from the date of this Deed apply
over the whole of the Shaikh’s present and future dominions.

Article 7
After the date of this Deed the following provisions as to minimum roya*ty
shall apply, in the place of Article VIII of the Lease, as altered by Article B 4 ot
the First Supplemental Deed; namely