Page 62 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat

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Since the Anglo-Iranian Oil Company, Limited sells a large proportion of its
Kuwait crude oil cither to refineries owned by it (where the oil becomes mingled
with other crudes) or on special long-term contracts, the Anglo-Iranian Oil
Company, Limited is prepared to accept that the price per ton payable by Gulf
Exploration Company to the Gulf Kuwait Company (as set out above) represents
as fair and correct a valuation of Kuwait crude oil as it is possible to obtain for the
purposes of Kuwait income tax and for its part is also prepared to accept that an
identical price shall be utilised when the .............................. Company disposes of
its crude oil to the Anglo-Iranian Oil Company, Limited (whether through the
D’Arcy Exploration Company, Limited or not) irrespective of the price at which
the Anglo-Iranian Oil Company. Limited may eventually sell that crude oil.
Anglo-Iranian Oil Company, Limited trusts that His Highness the Ruler of Kuwait
and the Kuwait Income Tax authorities will also accept such a price as representing
the fair and correct valuation of the Kuwait crude oil sold by ..............................
Company, Limited in any year and requests assurances from His Highness that
this will be so.
London,
June 20th, 1951.

Note.—" Company Limited ” referred to above is Kuwait
Oil Company Limited whose name now is or shortly will be D’Arcy Kuwait
Company Limited, now a wholly-owned subsidiary of Anglo-Iranian Oil Company
Limited.

(c)
Admission, dated December 30, 1951, by the D’Arcy Kuwait Company and the
Gulf Kuwait Company of Liability to Income Tax under the Ruler’s
Decree of December 29, 1951*

Whereas:
1. The D’Arcy Kuwait Company Limited (hereinafter called the “ British
Company ”) a company incorporated in the United Kingdom and formerly
registered under the name of the Kuwait Oil Company Limited and the Gulf
Kuwait Company (hereinafter called the “ American Company ”) a corporation
organised under the laws of the State of Delaware, U.S.A., their respective
successors and assigns by virtue of an Assignment by the British Company to the
American Company, dated 30th November, 1951, executed with the consent (which
is hereby confirmed) of His Highness Shaikh Abdulla As-Salim As-Sabah, C.I.E.,
the Shaikh of Kuwait (hereinafter called “ His Highness ”) are each vested with
an undivided half interest in the Petroleum Concession Agreement dated 23rd
December, 1934, made between the then Ruler (Shaikh) of Kuwait and the British
Company, which has been amended by a further Agreement dated the 30th
December, 1951, made between His Highness, the British Company and the
American Company (which Concession Agreement amended as aforesaid is here­
inafter called “ the Concession ”) and in all the rights, privileges and interests based
upon or derived from the Concession, and
2. The British Company and the American Company have appointed the
Kuwait Oil Company Limited (hereinafter called the “ Operating Company ”), a
company incorporated in the United Kingdom and formerly registered under the
name of the Kuwait Oil Company (London) Limited, as their Manager to manage
and carry on the operations under the Concession on their behalf, and
3. His Highness, by Decree No. 5, dated 29th December, 1951, has imposed
an Income Tax effective from midnight on 30th November, 1951, on certain bodies
corporate operating in Kuwait and the Political Resident in the Persian Gulf of
His Majesty’s Government in the United Kingdom has issued a King’s Regulation
making the said Income Tax Decree applicable to persons subject to the jurisdiction
of His Majesty in Kuwait.
• See Kuwait King’s Regulation No. 3 of 1951.