Muscat and Oman: oil exploration

This file relates to the oil exploration activities of Petroleum Development (Oman) Limited (PDO) and Cities Service Oil Company in Muscat and Oman. It contains correspondence concerning:

• Oil drilling operation at Fahud and surrounding areas, with particular attention on the Umm Al Samim-Umm Al Zamul boundary
• Question of whether the Sultan of Muscat and Oman Saeed Bin Taimur requires an advisor in oil negotiations with the Iraq Petroleum Company (IPC) and its subsidiaries; the position of N M P Reilly as advisor; and a subsequent misunderstanding between Reilly, F C L Chauncy and representatives from the oil companies
• Discussions over the need for an increase in the rental payment from PDO to the Sultan. It includes the issue of funds for the Muscat and Oman Field Force, the planned change of the company to a 50-50 agreement when oil begins to be produced for export and the eventual agreement of the company to an increased payment of 10 lakhs
• B A B Burrows’s update to the Foreign Secretary Anthony Eden on the future arrangements between the Sultan and Cities Service Company
• Update from Dhofar about sand storms and the progress of oil operations there
• Extract from Business Week on the work of Cities Service Company in Oman. It includes a map and colour photographs
• Discussion on the liability of PDO for Muscat customs duties
• IPC’s employment of Sir William Lindsay as its representative in Muscat
• The Sultan’s agreement to Cities Service Company erecting an aircraft hangar at Salalah
• Impending visit of H S Gibson of IPC to Salalah and Fahud and the need to warn him of an impending military operation at Nizwa