Oil affairs in Kuwait

FCO 8/2206 1974 Jan 01 - 1974 Dec 31

This file concerns oil affairs in Kuwait during 1974. It contains notes and correspondence on:

  • The allegation that the increased rise in the price of crude oil could largely be offset if governments that import oil curbed the excessive profits of the oil companies; and a meeting held in January 1974, at which members of Shell and BP discussed possible arguments that the oil companies could use to refute this allegation
  • The Participation Agreement between the Kuwaiti Government, BP and the Gulf Oil Corporation causing a division between members of the Kuwaiti National Assembly; the Economic and Financial Affairs Committee’s suggestion that the National Assembly should reject the present Participation Agreement, and re-enter negotiations with the two oil companies; and a copy of the Participation Agreement signed in Kuwait on 29 January 1974
  • Kuwait’s oil auction, including reference to: a small quantity of oil being purchased by China; the Kuwaiti Government's refusal to entertain bids under the posted price of $11.55 per barrel; and the Ministry of International Trade and Industry’s advice that Japanese oil companies restrict their bids to no more than 93 percent of the posted price
  • Negotiations between the Kuwaiti government, BP and Gulf Oil over buy-back arrangements
  • BP’s takeover of 60 per cent of the Kuwait Oil Company (KOC)
  • Iranian intentions on oil prices
  • The embargo in the Netherlands
  • The Kuwaiti Minister of Finance and Oil Abdul Rahman Al Atiqi's desire for a government-to-government oil deal with Britain, whereby Kuwait sells Britain its oil in exchange for arms
  • Aminoil, the KOC and the Arabian Oil Company Limited’s (AOC) oil production and export figures from October 1973 to February 1974
  • KOC’s operations from November 1973 to February 1974, including figures on: production, exports, shipments by country of destination and refinery input