Page 76 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat

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(c)
Letter dated August 10, 1953, from the Ruler of Kuwait to the Political Agent,
Kuwait, approving the terms of the Political Agreements between Her
Majesty’s Government and the D’Arcy Kuwait Company, and the Gulf
Kuwait Company (No. 3 and No. 4 above)
Reference your letters Nos. 57 and 116* dated 1.4.53 and 6.8.53 respectively, we
wish to inform you that we agree to the amendment of the texts of the Political
Agreement between Her Majesty’s Government and the D'Arcy Kuwait Company
Limited and the Gulf Kuwait Company. We also wish to express our thanks for
the interest you have taken in this matter.

No. 5
B.—KUWAIT NEUTRAL ZONE
Concession Agreement between the Ruler of Kuwait and the American
Independent Oil Company, dated June 28, 1948
In the Name of God the Merciful.
This is an agreement made at Kuwait on the 28th day of June in the year 1948
corresponding to the 23rd day of Sha’aban in the year of 1367, between
His Highness Shaikh Sir Ahmad al-Jabir as-Subah, K.C.S.I., K.C.I.E., the
Shaikh of Kuwait in the exercise of His powers as Ruler of Kuwait on His
own behalf and in the name of and on behalf of His heirs and successors in
whom is or shall be vested for the time being the responsibility for the control
and government of the State of Kuwait (hereinafter called “ the Shaikh ”)
and the American Independent Oil Company, a Company incorporated in the
State of Delaware in the United States of America, whose principal office is
situated in the City of Wilmington in the State of Delaware, its subsidiaries,
successors and assigns (hereinafter called “ the Company ”).

Article 1
The Shaikh hereby grants to the Company to the extent of His right, title
and interest the exclusive right to explore, search, drill for, produce and win
natural gas, asphalt, ozokerite, crude petroleum and their products and cognate
substances (hereinafter referred to as “ petroleum ”) within the “ Kuwait-Saudi
Arab Neutral Zone ” otherwise known as “ Saudi Arab-Kuwait Neutral Zone ”
including all islands and territorial waters appertaining to the Kuwait-Saudi
Arab Neutral Zone otherwise known as the Saudi Arab-Kuwait Neutral Zone
(hereinafter called “ Neutral Zone ”), the exclusive ownership of all petroleum
produced and won by the Company within said Neutral Zone, the right to refine,
transport, sell for use within said Neutral Zone or for export, or otherwise deal
with or dispose of any and all such petroleum and the right to do all things
necessary for the purposes of those operations. The Company undertakes,
however, that it will not carry on any of its operations within areas occupied
by or devoted to the purposes of mosques, sacred buildings or graveyards, or
carry on any of its operations except the sale of petroleum, housing of staff and
employees and administrative work within the present town wall of Kuwait.
The period of this Agreement shall be sixty (60) years from the date of
signature.
Article 2
(A) Within nine months from the date of signature of this Agreement the
Company shall commence geological and geophysical exploration.
(B) The Company shall drill for petroleum to the following total aggregate
depths and with the following periods of time at such and so many places as
the Company may decide: —
(i) 4,000 feet prior to the 4th anniversary of the date of signature of
this Agreement.
(ii) 16,000 feet prior to the 10th anniversary of the date of signature of
this Agreement.
(iii) 40.000 feet prior to the 20th anniversary of the date of signature of
this Agreement.
• This letter was only a reminder.