Aramco Concession Agreement

this tanker was the occasion of an impressive celebration in the presence of H.M the King. This fact underlines, according to the government, the importance of establishing links with overseas markets. Later, in 1945, the “Arabian Bahrain Pipeline” was completed and allowed the transport of oil by the high seas to the island of Bahrain; Later, at ig5o, the trans-Arab pipeline was put into service. It has transported more than 300,000 barrels of oil per day to the Mediterranean and from there to different destinations. Finally, since 1947, the company has organized this maritime transport with the legal means of the offtake1 agreements. All of this development, which has taken place to facilitate liaisons with the rest of the world, appears to have originated in circumstances that had a dominant influence on the parties from the outset and prompted them to grant the concessionaire a right to shipping. Given that the Tribunal considers that the parties have recognized from the outset that this right of transport granted to Aramco was decisive for the success of the undertaking, the fact that the company is not a shipping company does not matter. In particular, Miller and Henry were sent to inspect the concession area, most of them at al-Hasa – an area that was to be officially called “Eastern Province” in 1956 – and to look for geological formations that might indicate the presence of oil. Given that the concession area measures 961,567 square kilometres, significantly larger than France, the task was not easy. In this context, it is important to distinguish between concessions of public services and concessions for the extraction of raw materials, of which oil and mining concessions are a particular example. In accordance with a principle generally applied in the interpretation of concessions, any restriction and rights conferred by a general clause must be expressed clearly and unequivocally if it is to be invoked against the dealer.

This is what happened in Article 22, in the last sentence of paragraph 1, in order to exclude air transport and to reserve the issue of the use of aircraft within the country to a separate agreement. Therefore, shipping is not excluded by the mere absence from article 1 of the term “sea transport” or by a similar term. Similarly, the terms “on land” or “on territorial waters” are not included in the text, yet these modes of transport are not disputed by the government. On September 23, 1933, two American geologists landed in the small port of Jubail, on the east coast of the new kingdom of Saudi Arabia. They had come to open the search for oil in the Arabian Peninsula. The two men – “Bert” Miller and “Krug” Henry – were after Jubail in the Saudi government launching bahrain Customs, where he had spent the previous year for the Bahrain Petroleum Company (Bapco), a subsidiary of Standard Oil of California (Socal).

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