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of 65 years.(C) Payments are to be made in sterling but otherwise the terms aresimilar to those of the Superior Oil Company's concession. There is an obligationto drill withing five years. The Ruler accepted in writing the principles involvedin the accompanying Political Agreement.(62)
(c) Dubai81. The first oil concession in the Trucial States was obtained by PetroleumConcessions Limited from Dubai on May 22, 1937.(6) It contained a clausepermitting its transfer to Petroleum Development (Trucial Coast) Limited. Itcovers the State of Dubai, including all islands and territorial waters, except Hatta(paragraph 19 above) and the area in the Dubai creek “surveyed by ImperialAirways.” It is provided that when the territorial limits of the State have beendetermined the area covered by the concession will be coterminous with the limitsso determined. The annual payment to be made to the Ruler until oil is discoveredin commercial quantities is Rs. 30,000.
A well was drilled in the Jabal Ali area west of Dubai in 1951 and 1952 butno oil was discovered. No further drilling in the State has yet been undertaken.
82. In June 1949 the Ruler issued his declaration of jurisdiction over thesea-bed. As in the case of Abu Dhabi (paragraph 79 above) a dispute arose betweenhim and Petroleum Development (Trucial Coast) Limited over his right to granta separate concession for his sea-bed, and it was agreed that it should be referredto arbitration. On April 24, 1950, the Ruler granted a concession for his sea-bedto the Superior Oil Company on payment of Rs. 100,000 down with an annualpayment of Rs. 100,000 and a royalty fixed at one-fifth of the “ proceeds of sales.”(64)The company had previously entered into a Political Agreement with His Majesty'sGovernment,(65) the principles involved in which the Ruler agreed in writing toaccept. In May 1952 the company gave notice of the termination of this concession.The Ruler thereupon offered a concession for the sea-bed to PetroleumDevelopment (Trucial Coast) Limited. For domestic reasons the company as suchwas unwilling to accept the concession and it was obtained in the name of itsGeneral Manager in the Persian Gulf, Mr. Heseldin. The agreement was signed onAugust 7, 1952, for a period of 60 years.(*) It provides for a down payment of£15,400, an annual payment of £4,000 until oil is discovered in commercialquantities and a royalty of 4s. 6d. per ton. Except for the provision that paymentsare to be in sterling the concession conforms generally with the land agreementsheld by Petroleum Development (Trucial Coast) Limited. There is no obligationto drill within a specified period. The Ruler accepted in writing the principlesinvolved in the accompanying Political Agreement.(67) At the same time as theconcession was signed the arbitrators who had been appointed by the Ruler andPetroleum Development (Trucial Coast) Limited gave an agreed award based onthe findings in the Abu Dhabi case (paragraph 79 above).
(d) Sharjah and Kalba83. The Ruler of Sharjah granted a concession to Petroleum ConcessionsLimited with the right of transfer to Petroleum Development (Trucial Coast)Limited on September 17, 1937.(68) It covers the State of Sharjah, including allislands and territorial waters, except for the area being used by Imperial Airwaysand the Royal Air Force, and provides that when the territorial limits of the Statehave been determined the area covered by the concession will be coterminous withthe limits so determined. Under a schedule attached to the concession thecompany is debarred from undertaking the work in two areas, Jabal Faiyah andthe Wadi al Hulu, (which were considered unsafe) without the Ruler's permissionin writing. The annual payment to be made to the Ruler until oil is discoveredin commercial quantities is Rs. 40,000.(**) Under the schedule the company is
(61) No. 3 IV, O.A.C.(62) No. 4 IV, O.A.C.(65) No. 5 IV, 0.A.C.
64) P.R. to F.O. Despatch 40 of May 11, 1950 (EA 1273/38 of 1950).(65) (EA 1273/32 of 1950).(66) No. 7 IV, O.A.C.(67) No. 8 IV, 0.A.C.(68) No. 9 IV, O.A.C.
(69) Rs. 30,000 is mentioned in the body of the concession and an additional Rs. 10,000 in aletter attached to it.
