Agreement between Ruler of Qatar and Petroleum Development (Qatar) Limited concerning oil royalties

This file relates to the concession agreement between Petroleum Development (Qatar) (PDQ), Petroleum Concessions Limited (PCL) and the Ruler of Qatar Sheikh Ali Bin Abdulla Al Thani and the issue of oil royalties. It contains correspondence concerning:

• Approval by the Foreign Office and the Foreign Secretary Anthony Eden of the text of the concession agreement
• Report by C T E Ewart-Biggs on the unsuccessful attempt by the oil company to get Sheikh Ali to sign the supplemental agreement on the increase in oil royalties; Ewart-Biggs second report with the Ruler still refusing to sign citing unreasonably low royalty payments
• Sheikh Ali’s amendments to the agreement
• Decision by Sheikh Ali that he will only sign the agreement if he is given an undertaking by either the oil company or HMG that this will not prejudice the immediate revision of the document if needed along with his insistence that Qatar be given similar terms to Iraq and Kuwait
• PDQ’s assertion that a 50-50 agreement in the early stages of an oilfield’s life is not profitable, citing the example of the Basra field in Iraq; HMG’s advice that the company should look to assure the Ruler that after a specified time a 50-50 agreement could be negotiated; and PDQ’s decision to open negotiations on a 50-50 basis with the Ruler
• Sheikh Ali’s instructions to his advisor P L Plant to negotiate an agreement similar to Kuwait’s
• PCL’s list of proposals with which to open negotiations with Sheikh Ali
• Various draft articles within the agreement
• Table of comparison by PDQ of the projected 50-50 share of profits with existing payments