Page 88 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat

84
No. 7

Concession Agreement signed on February 20, 1949, between the Saudi Arabian
Government and the Pacific Western Oil Corporation, relating to the
Neutral Zone.

^ This Agreement entered into at on corresponding
and^ between the Government of the Kingdom of Saudi Arabia, hereinafter called
the Government,” and Pacific Western Oil Corporation, a corporation organized
on November 10, 1928, under the laws of the State of Delaware in the United States
of America and presently existing under and by virtue of said laws, hereinafter
called the44 Company.”
Witnesseth that:
Whereas His Majesty the King of the Kingdom of Saudi Arabia, among other
things, has sovereignty over an undivided one-half interest in and to the neutfal
territory lying between Saudi Arabia and Kuwait, in accordance with that certain
agreement concluded between His Majesty Abdul Aziz Bin Abdul Rahman A1
Faisal A1 Saud the King of Saudi Arabia and His Highness Ahmad A1 Jabir
As-Subah the Shaikh of Kuwait dated December 2, 1922, corresponding to 13 Rabie

Whereas His Majesty the King of Saudi Arabia, among other things, is the
owner of the oil and gas rights with respect to said undivided one-half interest; and
Whereas His Majesty the King of Saudi Arabia has authorized the Government
to enter into this agreement; and
Whereas the Company is desirous of obtaining from the Government, and the
Government is desirous of transferring and granting unto the Company, the con­
cession and rights hereinafter set forth and described in respect of the area covered
by said Agreement dated December 2, 1922, hereinabove referred to, and an
undivided one-half interest in the islands, if any, and the territorial waters
pertaining to said area, all of which is hereinafter called the 44 Neutral Zone,” upon
the terms and conditions hereinafter set forth :
Now, therefore, in consideration of the premises and the mutual agreements
and undertakings hereinafter contained, the Government, represented by His
Excellency Shaikh Abdulla Sulaiman al Hamdan, Minister of Finance of Saudi
Arabia, acting on behalf of the Government, and the Company, represented by
Barnabas B. Hadfield, Vice-President, acting on behalf of the Company, hereby
agree as follows:
Article 1
The Government grants, cedes, conveys, transfers and sets over unto the
Company all of the rights which His Majesty the King of Saudi Arabia or the
Government has with respect to oil, gas, asphalt, paraffin, ozokerite, casinghead
gas and other petroleum products, by-products and their derivatives (all of which
are sometimes herein referred to as petroleum products) existing in or to be pro­
duced from said Neutral Zone, including, without limiting the generality of the fore­
going, the ownership thereof, the right to explore, drill for, produce, refine, process,
transport, store, sell and export the same, and the right to use the land, the islands,
if any, and territorial waters embracing said Neutral Zone, as hereinabove defined,
and the land under such waters, to the full extent reasonably necessary or desirable
to develop and operate the same for the production of such petroleum products and
the refining, processing, transportation, storage, sale and export thereof, and the
erection and maintenance of such facilities as may be reasonably necessary or
desirable in conducting the operations incidental to the exercise of such rights and
the development and exploitation of the properties to which such rights pertain,
including such humanitarian facilities as may contribute to the well-being or
education of personnel engaged in such operations.
Article 2
Without limiting in any manner or way the generality of the rights described
in Article I hereof, it is understood and agreed that such rights shall include, speci­
fically the following: the right, within the Neutral Zone, to construct, maintain
and operate wells, refineries, casinghead plants, other facilities for producing or
processing the petroleum products produced, pipelines, storage tanks and other