Page 130 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat

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bin Qasim Al I hani, Ruler of Qatar (hereinafter called “ the Shaikh ” which
expression whcic requisite includes his successors and assigns) on the one part
and Richard Ernest Rowland Bird on behalf of Petroleum Development (Qatar),
Limited (hereinafter called the Company ” which expression where requisite
includes its assigns) on the other part;
Whereby it is agreed between the Shaikh and the Company as follows: —
Article 1
In this Agreement unless inconsistent with the subject or context: —
“ The Existing Convention ” means and includes (i) the Agreement dated the
17th day of May, 1935, made between Shaikh Abdulla bin Qasim Al Thani
(then the Ruler of Qatar) of the one part and Charles Clark Mylles on behalf of
Anglo-Persian Oil Company, Limited, of the other part, and (ii) two letters also
dated the 17th day of May, 1935, addressed by the said Charles Clark Mylles
to the said Shaikh Abdulla (all rights and obligations of the said Anglo-Persi an
Oil Company, Limited, thereunder having, with the assent and acquiescence of
the said Shaikh Abdulla, been duly assigned to the Company by a Deed of
Assignment dated the 23rd day of April, 1946, made between the Anglo-Iranian
Oil Company, Limited (formerly the said Anglo-Persian Oil Company, Limited),
of the one part and the Company of the other part).
“ The Amended Convention ” means the Existing Convention as amended
by this Agreement.
"Convention Payments” means in relation to any period the sums which the
Company is liable to pay in respect of that period under the Amended Convention
(other than the annual fixed sum provided for in paragraph (c) of Article Fourth
of the Amended Convention and the payment provided for in Article Eleventh
of the Amended Convention) and any other payments, rentals, duties, imposts
and other exactions of a like nature payable by the Company to the Shaikh in
respect of such period.
“ Exported Oil ” means crude oil produced by the Company in Qatar freed
of water and foreign substances and exported therefrom.
“ Dealings in Exported Oil ” means dealings in Qatar in exported oil or in
rights to take delivery thereof.
" Qatar Income Tax ” means in relation to any year the total amounts
receivable by the Shaikh in respect of that year by way of income tax based on
income of that year arising in any way from dealings in exported oil.
“Qatar ” means the area in which the Company is entitled to operate under
Article Second of the Amended Convention.
“ Ton ” means English Ton of Two Thousand Two Hundred and Forty
pounds.
" Year ” and “Month " shall respectively be construed in relation to the
English Solar Calendar and not any other.
“ Effective Date ” means the date of signature of this Agreement.
“ The Initial Period ” means the period from the effective date down to arid
including the 31st day of December, 1952.
“ Posted Prices ” means the prices (expressed in shillings per ton) f.o.b. sea­
board terminal for Qatar crude oil of the gravity and quality concerned arrived
at by reference to free market prices for individual commercial sales of full cargoes
and in accordance with the procedure set out in the Schedule hereto.
“Border Value” means the value (expressed in shillings per ton) of Qatar
crude oil at point of export based on applicable posted prices and having taken
into account average realisations from cargo and long-term contract sales.

Article 2
(a) The Company undertakes that as from the Effective Date the Shaikh
shall receive in Sterling in the manner provided in paragraph (c) of this Article
an amount equal to 50 per cent, of the profits arising in Qatar on exported oil
and on asphalt, ozokerite and natural gas produced by the Company in Qatar
freed from water and foreign substances and exported therefrom.
(h) The profit referred to in the preceding paragraph shall in relation to
exported oil for the initial period and for each year thereafter be the difference
between the border value per ton of the exported oil in such period or year and
the cost per ton of such oil multiplied by the number of tons so exported,
ascertained in each case in accordance with Article 4 hereof.