Page 46 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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(a)
Letter dated December 8, 1952, from The Bahrein. Petroleum Company to the
Ruler of Bahrain requesting the latter’s acceptance of the arrangements
made with regard to the sale price of Crude Oil produced from the
Bahrain Oil Concession, with endorsement conveying the Ruler’s
acceptance
I have the honour to confirm the agreement into which Your Highness and
The Bahrein Petroleum Company Limited have to-day entered, as follows:
(1) The weighted average of the prices for which crude oil produced and
extracted from the ground and from under the seabed belonging to Bahrain
shall be sold, exchanged, or bartered during any taxable year, which prices
will be a principal factor in computing the Company’s income, shall be the
weighted average of the prices at which foreign crude oil brought into and
icfined in Bahrain during the taxable year is purchased f.o.b. pipelines or
loading ports situated in the Persian Gulf, all prices being determined after
adjustment for any differences in gravity at rates prevalent in the Persian Gulf.
No crude oil produced and extracted from the ground or from under the sea­
bed belonging to Bahrain shall be given away other than that which goes into
the petrol furnished to the Bahrain Government free of charge in accordance
with the Supplemental Agreement, dated 8th December, 1952.
(2) If Your Highness should at any time consider that the above prices
have not been fairly and reasonably arrived at, the Company agrees to review
the matter with Your Highness.
The Company will appreciate Your Highness kindly indicating acceptance
upon the attached duplicate of this letter and returning that duplicate to the
Company.
Accepted:
His Highness,
SHEIKH OF BAHRAIN.

(b)
Letter dated December 8, 1952, from The Bahrein Petroleum Company to the
Ruler of Bahrain informing the latter of the suspension on, and after
January 1, 1952, of monthly payments of 5,000,000 rupees made to him
by the Company, in accordance with their letter of June 28, 1951 (No. 2 (g)
above), with endorsement conveying the Ruler’s acceptance
I have the honour to confirm the agreement into which Your Highness and
The Bahrein Petroleum Company Limited have to-day entered, as follows: —
In consideration of the Company’s agreement, contained in Paragraph 1
of the agreement supplemental to the Mining Lease of 29 December, 1934,
which Supplemental Agreement was executed to-day, to pay to Your Highness
a fee of two and one-quarter pence sterling (United Kingdom) per barrel
in respect of all foreign crude oil brought into and refined in Bahrain on
and after 1 January, 1952, the Company will make no further voluntary
payments in accordance with the Company’s letter to Your Highness
CON-722, dated 28 June, 1951, and all such payments made in respect of
periods subsequent to 31 December, 1951, shall be credited against, and
be treated as payments on account of, the Company’s obligation under
Paragraph 1 at the rate of exchange provided in Paragraph 2 of the Supple­
mental Agreement.
The Company will appreciate Your Highness kindly indicating acceptance
upon the attached duplicate of this letter and returning that duplicate to the
Company.
Accepted:
His Highness,
SHEIKH OF BAHRAIN.
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