Oil affairs in Kuwait

This file concerns Kuwait’s renegotiation of the terms of an oil participation agreement with British Petroleum (BP) and Gulf Oil Corporation. It contains correspondence and memoranda relating to:

• The difficulties of the Government of Kuwait in ratifying the participation agreement in the National Assembly, as a result of support for increasing Kuwait’s share in the Kuwait Oil Company Limited (KOC)
• Concerns regarding the possible collapse of the agreement
• The question of Kuwait gaining a 51% share in KOC
• The possibility of Kuwait demanding a 100% participation share and the question of compensating the oil companies
• Media speculation concerning the negotiations
• HM Ambassador to Kuwait A J Wilton’s despatch recommending that BP and Gulf acquiesce to Kuwaiti demands
• BP’s policy towards the negotiations, and the problems of establishing communications with the Government of Kuwait
• Speculation amongst BP and Gulf concerning the outcome of the renegotiations, and the problems caused by the lack of clarity from the Kuwaitis
• BP’s talks with the Kuwait Minister of Finance and Oil Sayyed Abdulrahman Al Atiqi
• Gulf and BP’s unwillingness to agree to Kuwaiti demands
• The translation and explanatory memorandum for a draft law to nationalise all oil companies operating in Kuwait
• Media reports of the nationalisation of the KOC
• The effects of the renegotiations on the price of Kuwaiti oil
• The interest of Abu Dhabi in renegotiating its participation agreement
• Libya’s renegotiation of its participation agreement

The file also contains correspondence concerning:

• The production figures of the KOC
• The incorrect estimates of Kuwaiti oil reserves; the question of Al Atiqi intentionally misleading the National Assembly; the question of Al Atiqi having been misled by KOC; and the question of acquiring accurate figures
• The question of conserving Kuwait’s oil reserves though a freeze on production and Kuwait’s source of income once the oil has run out; and the translation of an explanatory memorandum for a draft law concerning the conservation of petroleum resources
• KOC trade union concessions, undertaken at the expense of the Government of Kuwait’s share of KOC profits; and details of a strike at a KOC refinery
• The fire at a refinery owned by the Kuwait National Petroleum Company
• The 34th meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC)
• The future of Mohammad Abdul Rahman Al Bahar’s agency arrangements with Shell
• An article in the Birmingham Post advertising a book by Leonard Mosley concerning the history of oil exploration in the Middle East, critical of the Ruler of Kuwait Sheikh Sabah Al Salem Al Sabah
• The question of retrospective harbour charges demanded by the Governments of Kuwait and Saudi Arabia
• The visit of the Egyptian Minister of Petroleum Ahmad Izzeddin Hilal to Kuwait concerning strengthening economic cooperation
• The question of Turkey importing oil from Kuwait
• The construction of a dry dock in Bahrain
• The appointment of Dr Ali Ahmad Attiqa as Secretary-General of the Organization of Arab Petroleum Exporting Countries (OAPEC)
• The retirement of the Managing Director of KOC K R Henshaw
• Negotiations between the Arabian American Oil Company (ARAMCO) and Saudi Arabia concerning the buy-back price of oil
• Rumours concerning direct oil sales between Kuwait and Thailand
• A joint operation between Saudi Arabia, Libya and Kuwait to provide Syria with oil and gas
• KOC’s relinquishment of their oil concession at Matriba, and a map showing oil concessions in Kuwait