Page 23 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat

19

(b)
Indenture No. 2, dated February 15, 1933, between the Bahrein Petroleum
Company and the Ruler of Bahrain Modifying and Supplementing the
Provisions made in Articles VI and IX of the 1925 Concession Agreement
for Payment of Oil Royalties and Publication of the Company’s Yearly
Accounts
Indenture between Shaikh Hamad bin Shaikh Isa A1 Khalifah, Shaikh of Bahrain
(hereinafter called “ the Shaikh ”) acting on the advice of the British Political
Resident in the Persian Gulf of the one part and the Bahrain Petroleum
Company Limited (hereinafter called “ the Bahrain Company ”) a Company
incorporated under the Laws of the Dominion of Canada of the other part.
Whereas this Indenture is supplemental to the Concession Agreement dated
the second day of December One thousand nine hundred and twenty-five and made
between the Shaikh of the one part and Eastern and General Syndicate Limited
of the other part and now vested by assignment in the Company which agreement
has been extended and modified by an Indenture dated the twelfth day of June
One thousand nine hundred and thirty and further extended by agreement to the
second day of December One thousand nine hundred and thirty-three.
Now this Indenture witnesseth that it is hereby agreed and declared that the
said Concession Agreement shall be further modified in manner hereinafter
appearing, that is to say: —
1. The words “ Except for payments in respect of royalty which shall become
payable under Article IX of the Second Schedule to this Agreement in respect of
oil won in excess of 100 tons ” shall be inserted in Article VI of the said Agreement
immediately before and so as to qualify the sentence beginning with the words
“ they shall not be liable to pay any further sums.”
2. The following shall be substituted for the existing Article IX of the Second
Schedule to the said Agreement that is to say: —
“ IX. The right to win up to one hundred tons of oil free of payment
and further quantities of oil on payment of a royalty of Rs. 3. 8. 0 per ton of
net crude oil got and saved (i.e. after deducting water and foreign substances
and oil required for the customary operations of the Company’s installations
in the Shaikh’s Territories).”
3. There shall be inserted in Schedule 2 of the said Agreement immediately
after Article IX two new Articles as follows: —
“ IXa. For the purposes of such royalty payments the Company shall
measure by a method customarily used in good oilfield practice all crude oil
won and saved and the Shaikh by his Representative duly authorised by the
Political Resident in the Persian Gulf shall have the right to examine such
measuring and to examine and test whatever appliances may be used for
such measuring. If upon such examination or testing any such appliance
shall be found to be out of order the Shaikh may require that the same be
put in order by and at the expense of the Company and if such requisition
be not complied with in a reasonable time the Shaikh may cause the said
appliance to be put in order and may recover the expense of so doing from
the Company and if upon any such examination as aforesaid any error shall
be discovered in any such appliance such error shall if the Shaik h so decide
after hearing the Company’s explanation be considered to have existed for
three calendar months previous to the discovery thereof or from the last
occasion of examining the same in case such occasion shall be within such
period of three calendar months and the royalty shall be adjusted accordingly.
If the Company desire to alter any measuring appliance it shall give reasonable
notice to the Shaikh or his representative to enable a representative of the
Shaikh to be present during such alteration.”
“ IXb. The Company shall keep full and correct accounts of all crude
oil measured as aforesaid, and the said representative of the Shaikh shall have
access at all reasonable times to the books of the Company containing such
accounts and shall be at liberty to make extracts therefrom and the Company
shall at its own expense within three calendar months after the end of each
46467 •D 2