Page 358 - The Arabian Gulf States_Neat

294 THE LEGAL STATUS OF THE ARABIAN GULF STATES
Saudi Arabia-Kuwait (<oxerlapping of the Neutral Zone and the Kuwait-
Shell concessions): According to Saudi Arabia, this dispute concerns
the overlapping of Kuwait-Shell concession area of 1961 with AOC
1957 concession area respecting her undivided half-share interest in
the natural resources of the Neutral Zone offshore areas. The difference
appears to have arisen from different definitions given for the offshore
boundaries of the Neutral Zone by Kuwait and Saudi Arabia in their
1957-8 concessions with AOC. It is suggested that the definition of the
concession area embodied in the Kuwaiti concession agreement with
AOC is less extensive than the definition of such area in the Saudi
concession agreement with the same company; the Saudi concession
area granted to AOC extends further northward. According to the
Saudi Minister of Petroleum, who commented recently on the situa­
tion, a seismic survey over the Neutral Zone concession area has
revealed ‘a structure with a large production potential1 which would
be covered by the definition of the concession area embodied in the
AOC 1957 concession with Saudi Arabia but not by the definition
contained in the AOC 1958 concession with Kuwait. This Saudi-
Kuwaiti controversy, which primarily concerns the definition of the
Neutral Zone northernmost boundary, has resulted from the Kuwait-
Shell 1961 concession agreement. According to the Saudi Government,
the ‘structure’ in question which is thereby allotted to the Kuwait-
Shell concession area, constitutes an overlapping with the Neutral
Zone 1957 concession area.1

(d) The process of negotiations on the settlement of offshore boundary
disputes
A beginning in the way of seeking settlement of offshore boundary
disputes in the Gulf was made in October 1963, when representatives
from Iran, Iraq, Kuwait and Saudi Arabia, meeting in Geneva, all
expressed their agreement on working together to reach equitable
settlements of their disputes.2 Soon after that an Iranian delegation
arrived in Iraq in November 1963, where it held discussions with
Iraqi authorities on the question of the delimitation of the offshore
boundaries of the two countries. Consequently, it was announced
that the two States agreed on ‘a basis for joint exploitation of oil in
the disputed areas whereby the interests of both parties would be
observed’. Later, it was announced in April 1964, that Iran was to
begin talks with both Kuwait and Saudi Arabia relating to the deter­
mination of her offshore boundaries with them. Subsequently, the
Iranian Foreign Minister visited Kuwait, and after holding talks
with his counterpart, the Kuwaiti Foreign Minister, the two Ministers
issued a joint communique in which they announced their concurrence
1 MEES, No. 51, 25 October 1963.
1 MEES, No. 21, 27 March 1964.