OIL DEVELOPMENTS

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP80-00926A000600040001-2
Release Decision: 
RIPPUB
Original Classification: 
R
Document Page Count: 
47
Document Creation Date: 
December 14, 2016
Document Release Date: 
April 1, 2002
Sequence Number: 
1
Case Number: 
Publication Date: 
October 22, 1948
Content Type: 
REPORT
File: 
AttachmentSize
PDF icon CIA-RDP80-00926A000600040001-2.pdf4.09 MB
Body: 
rTIUCTD Appr ved ei;ase 2002/ CENTR SIFICATItINTELL4GrEVCE AGENCY INFORMATIVOTROMT COUNTRY SUBJECT PLACE ACj RED DATE ACQUIRED ?. Middle East Oil Developments ardionores Arab States 25X1A 25X1X 25Xf 0006000 RENAT N ? DATE DISTR. 22 Oct 1948 NO. OF PAGES 1 NO, OF ENCLS. (LISTED BELOW) SUPPLEMENT TO REPORT NO. 25X1A Available 'on loan from the CIA Library are threecopies of "Summary of Mid41,LEast Oil Developments", 2n4. Edition 1948. revised to June 1, 1948, ? , , prepared by Arabian American Oil Company. CLASSIFICATION - end ? EESTLICTED, STATE /VOW 3: NAVY Itt NSRS AIR X D ISTR I BUTION RESTRICTED Approved For Release 2002/08/07 : CIA-RDP80-00926A00060004000172 25X1 Approved ror Release 2002/08/07 : CIA-RDP80-00926 A000600040001-2 25X1A SUMMARY MIDDLE EAST OIL DEVELOPMENTS 2nd EDITION .1948 ARABIAN AMERICAN OIL COMPANY Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 SLIMMAR?i OF MIDDLE EAST OIL DEVELOPMENTS 2nd EDI I ION?1L48 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 SUMMARY OF MIDDLE EAST OIL DEVELOPMENTS General Survey Historical Highlights Reserves; Current and Future Production General Economic Aspects Returns to Governments Profits of Companies Refineries Major Pipeline Projects Relations between Companies Characteristics of Middle East Crude Oil Iran, (Southwest) Summary of Developmenrs Iraq, Summary of Developments Kuwait, Summary of Developments Saudi Arabia, Summary of Developments Bahrein, Summary of Developments . Qatar, Summary of Developments Explanation of A.P.1. Gravity and Conversion Table Prepared by Arabian American 01! Company 2 Revised 6-1-48 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 CHARTS & ILLUSTRATIONS Comparative Areas Middle East vs. U. S. Petroleum Reserves of the World Daily Average Crude Oil Production Middli East Daily Average Crude Oil Production - U. S. vs. South America & the Middle East World Movement of Petroleum 1938-1917 Petroleum Facilities - Middle East World Consumption of Petroleum Middle East - Iran Fields Iran Production by Years Middle East - Iraq Fields Iraq Production (Kirkuk) by Years Middle East - Kuwait Fields Middle East - Saudi Arabia, Bahrein & Qatar Fields Saudi Arabia Production by Years _ Bahrein Production by Years Concession Areas of Middle East opposite page opposite page opposite page opposite page opposite page opposite page opposite page 10 Opposite page 1 c page opposite page 1; page opposite page )1 _ opposite page 22 page 7zi page 28 following page 30 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 SUMMARY OF MIDDLE EAST OIL DEVELOPMENTS GENERAL SURVEY (See map in back) As thus far explored and developed, the oil region of major importance in the Middle East lies in and adjacent to the great basin occupied by the Tigris and Euphrates Rivers and the Persian Gulf. It covers portions of Iran, Iraq and Saudi Arabia and the smaller Sheikhdoms of Kuwait, Bahrein and Qatar. That is the picture today. It is possible, however, that oil production may later be discovered on the other side of the great Iranian mountain ranges in northern Iran, and west of the region above described in Syria, Lebanon, Palestine and Trans-Jordan. Exploration and test drilling are either under way or anticipated in those areas and on the island of Cyprus. Also remaining to be tested are the Trucial Coast Sheikdoms, Oman, Dhofar, Muscat, and Hadhramaut, all lying in the southern portion of the Arabian Peninsula. Oil has been produced in Egypt for a great many years but not in important quantities. Active exploration is still under way in that country. The west- ern portion of Saudi Arabia is not regarded as having oil potentialities. Great Britain, the United States, France and Holland are all substantially represented in Middle East oil developments. On the northeastern side of the Persian Gulf-Mesopotamian basin lies the important concession in south- west Iran held by a British company, while, on the opposite side, the conces- sions in Saudi Arabia and Bahrein are held by American interests. In between, the concession covering Kuwait is held by a company half British and half American owned, and the concessions in Iraq by companies jointly owned by British, French, Dutch and American groups. The same international group represented in Iraq, also own companies holding concessions or exploration rights in Cyprus, Syria, Lebanon, Palestine Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 and Trans-Jordan and, to the southward, in Qatar, the Trucial Coast, Oman, Dhofar, and Hadhramaut. There are two "neutral zones" along the northern border of Saudi Arabia. The westerly of these is jointly shared by the governments of Iraq and Saudi Arabia, the easterly one by Kuwait and Saudi Arabia. Arabian American Oil Company holds concession rights on the undivided half interest of the Saudi Arabian Government in both zones. The Basrah Petroleum Company Ltd. holds the Iraq interest in the westerly one. The Kuwait interest in the so-called Kuwait neutral zone has not yet been leased, although several companies, both British and American, have been negotiating for it. The U.S.S.R., which holds no interest in the concessions southwest of the Iranian mountain ranges, negotiated a proposed concession in April, 1946 covering a portion of northern Iran adjacent to the Caspian Sea, to be operated by a company owned 51% by the U.S.S.R. and 49% by Iran. The con- cession was rejected by the Iranian Parliament (Majlis) in October, 1947. Although in the same country as the British-owned Anglo-Iranian conces- sion in southwest Iran, the area concerned belongs in a different geographic and economic province as regards the movement and use of oil. In other words, the natural outlet for oil exports from northern Iran would be into or through Russia, which is strictly not the case as regards oil produced in southwest Iran or the Arabian countries. In the opinion of most geologists, there are very large undeveloped areas within Russia itself that are capable of abundantly supplying the requirements of that country and which offer much greater promise for substantial oil production than the proposed concession in northern Iran. Historical Highlights: Oil exploration in the Middle East began in the early part of this century in southwest Iran, and oil was discovered there in 1908. By 1913 the oil developed in this area had assumed sufficient importance to induce the British {21 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 APR ' SAUDI ARABIA 'E"ALIFORNIA -OTAL - 111ANICO OT 426,032 SQ. MILES CONCESSION AREA tilk094 nEl Appro e a 002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Government to acquire a 51% interest in the Anglo-Iranian Oil Company. (This interest has since been increased to about 56%.) The Kirkuk field in Iraq was discovered in 1927 and pipelines to the Med- iterranean Sea were completed in 1934. The wholly-American enterprises entered the Persian Gulf region in the early 30's, discovering oil in Bahrein in 1932 and in Saudi Arabia in 1938 (some oil was discovered in Saudi Arabia in 1935 but not in commercial quantities). Although Iran and Iraq pro- duced substantial quantities of oil before World War II, the real impor- tance and magnitude of Middle East oil resources were not fully appreciated until recent years. World wide attention was drawn to them by the rapid increase in Iranian production and refining facilities as a war measure, and by the spectacular increase in Saudi Arabian production during 1946 and 1947, the development of which had been retarded by lack of facilities during the first few years of the war. RUSSIA 0' Reserves; Current and Future Production: 0? 444 II .1 Although the exploration and development of the Middle 141/ f :?, East region are still in an early stage, the reserves already 4 IN t? 1 proven are believed to equal or exceed those of the entire , / I. -, Western Hemisphere (see chart). The region has been lil without parallel in previous oil experience for the large r ? A II. ?, extent of its oil pools, the large average magnitude of its tillhZ. iik*k17. .,,wells, and the small number of failures in wildcatting. iit41?' " Although exploration has been difficult, opp.. OPP' RUSSIA and has required the most scientific tech- ., OTHER EAST. HESHSPHERE 2.8 Ig PROVE RESER nique known to the industry, a large number of favorable structures have been found which, although yet untest- ed, promise greatly to augment present proven reserves as the need arises. [3] 8/07 : CIA-RDP80-00926A000600040001-2 ? PE SET1 EIC 000,oito' BARREjos? fO'ft 4 AS OF DEC. 31,1947 BILLION BARRELS 30 25 20 15 MOST FAVORABLE POSSIBLE gui UNFAVORABLE & IMPOSSIBLE BILLION BARREL 10 5 30 25 20 15 10 5 :LL IRU fl Ut I1t vtAa I0 013*1 ra UNITED STATES 1 ;-?.:A.VAL17,7 ARABIA, SO. AMERICA EUROPE U.S.S.R. MIDDLE EAST Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 FAR EAST Approved For Release 2002/08/07: CIA-RDP80-00926A000600040001-2 Total production from the Middle East is in the order of 1,000,000 barrels daily in the middle of 1948 as compared to an average of 325,000 barrels in 1939. The output is expected at least to double within the next few years with the completion of large pipelines projects, either under way or in pre- paration, for the movement of oil from Saudi Arabia, Iraq, Iran and Kuwait to the eastern shores of the Mediterranean. The oil companies are planning to invest hundreds of millions of dollars in these facilities and the development of production and ancillary facilities to support them in order to move Middle East oil into Europe, Asiatic and other world markets where it is badly needed to relieve a present situation of severe shortages. The trend of daily average production in the Middle East is shown in the following table, ( thousands of barrels). Iran Iraq Bahrein Saudi Arabia Kuwait Total 1936 171 81 13 265 1937 213 86 21 320 1938 215 87 23 325 1939 214 79 21 11 325 1940 181 49 20 14 264 1941 139 29 18 12 198 1942 198 48 17 12 275 1943 204 69 18 13 304 1944 279 82 19 21 401 1945 358 90 20 58 526 1946 402 92 22 164 40 720 1947 420 92 25 246 49 832 Middle 1948 425 92* 30 410 100 1057 *Iraq production temporarily reduced to about half this figure because of disturbances in Palestine. General Economic Aspects: Western Europe and other regions which have not been so fortunate as the United States in the ready availability of oil supplies will doubtless benefit greatly by the abundance of oil found in the Middle East. The United States will likewise benefit from the development of a new source of oil to relieve the drain on Western Hemisphere reserves in supplying [4] Approved For Release 2002/08/07: CIA-RDP80-00926A000600040001-2 ' THOUSAND BARRELS 500 400' Approved For Release .2 : CIA-RDP8000926A0006)0040001-2 FE2R RA NEAN 'T ' A171.IDDLE EAST '"- SyR1AQAIYARAH "tKIRKIIK Tripoli lANA Sidon, KERMANSHAH rt, Ra"a IRAQ \ : :JOIfDAN .\ , ???, IRAN LALI MASJID?I-SULAIMAN INIIITE OIL SPR'NGS : --HAFT KEL ,AGHA JARI Abadan't .-,GACH SARAN KUWAIT ? ? .1.?....BURGHAN 4;s. ABU HADRIYA, HAS TANURA QATIF piDAmmAm ,_, BUQQA ;'''''' BAHREi V '-'1 ? ABQAIQ lif ,DUKHAN .....? ,.. (, SAUDI ' ''Tft? ?????N 93031 32 33 34 35 36 37 3 ? :EF1.:1:11 1948,-ES11MATED MIDDLE Of YEAR 46 41 42 4344 4 1:1) IRAQ ARABIA AFGHANISTAN ' A 3 A S E A : , 11111.1 41111 f,r 11,1,11411killit144;18+411iiiii4M10411i919113itktit451,,114410.41611,141,411 411,41.444,, 0011 1 i 1(1,,;14. 1 L ' 2- r :4 ntit 14.p Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 A011111111)vecillilbr Rallitse 11111112/0811111 : COURDP111110091111111,000111.0401111.11-2 DAILY AVERAGE CRUDE OIL PRODUCTION MILLIONS OF BARRELS DAILY 'It 1'4111! UNITED STATES SOUTH AMERICA pr_ MIDDLE EAST Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 whom they live and deal, they have promoted the welfare and education of their local employees and have recognized that, to be successful, the enterprises must be of fair and lasting benefit to the local people as well as to themselves and to the countries who need the oil. Returns to Governments: Middle East Governments receive a direct benefit from oil production in the form of cash royalty payments. In some instances returns include pay- ments in lieu of taxes and other payments. For example: Company and Approximate Equivalent Country Royalty and Other Payments in Dollars A. I. 0. C. 4 shillings sterling per ton; plus pay- Total Iran ment per ton in lieu of taxes; plus Approximately premium according to gold price in 20 to 22 cents London above ?6 per ounce; plus a per barrel sum equal to 20% of distribution to ordinary shareholders over and above I. P. C. 4 shillings gold per ton, paid in sterling $1.65 per ton Iraq according to price of gold in London .22 per barrel on day of payment Aramco 4 shillings gold per ton, or equivalent $1.65 per ton Saudi Arabia in dollars or sterling .22 per barrel Bapco Bahrein 31/2rupees per ton $1.05 per ton .14 per barrel Kuwait Oil Co. 3 rupees per ton .975 per ton Kuwait plus 1/4 rupee per ton .13 per barrel in lieu of taxes. [61 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 According to estimated production, such direct payments to the respective governments accruing during 1948 can be expected to approximate the follow- ing amounts, expressed in terms of dollars at present rates of exchange: Iran $33,000,000 Iraq 7,250,000 Saudi Arabia 28,000,000 Bahrein 1,500,000 Kuwait 4,750,000 In addition, many of the governments receive cash rental payments on un- developed portions of their countries held under concession. Iraq, for exam- ple, annually receives ?400,000 gold ( $3,295,000) from the Mosul and Basrah concessions. Apart from these direct payments to governments, large local expenditures by the oil companies on wages, supplies, etc. afford a substantial benefit to the various national economies. For example, the local wages bill of the Anglo- Iranian in Iran exceeds ?1,000,000 ( $4,000,000 ) monthly; that of Aramco in Saudi Arabia averages about $1,500,000 monthly. The direct and indirect benefits to the countries concerned will, of course, increase as operations and production are expanded. Profits of Oil Companies: The oil companies operating in the Middle East are still faced with enormous capital investments before they can round out a balanced picture of available daily production and oil handling facilities commensurate with the potential oil available in the ground and potential demand. In view of the unsettled conditions existing in the world today and the unusual risks attendant upon investments of this kind, they cannot be sure of making any ultimate net profit until their investment has been repaid. Until recently, the Arabian American Oil Company, for example, has paid no dividends in the fourteen years of its operation in Saudi Arabia notwithstanding that what started and continued for several years as a highly speculative venture [7) Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Traditionally the West- ern Hemisphere has sup- plied crude oil and products to make up the East- ern Hemisphere's deficien- cy. With world consump- tion in '1938 at 5.45 mil- lion B.P.D. the West moved 688,000 B.P.D. to the East. The U.S.A. imported 170,- 000 B.P.D. and exported 447,000 B.P.D. The Mid- dle East exported 237,000 B.P.D. World War II fo- cused attention on the Mid- dle East and started a trend against the history of world supply. In 1947 with world con- sumption risen to 8.5 mil- lion B.P.D. the Western Hemisphere was still ex- porting 664,000 B.P.D. Eastward. Consumption in the U.S.A. was up 75 % over 1938 and we became net importers for the first year since 1925. Eastern Hemisphere consumption, due to shortage of supply, was up only 5 %. Middle East production rose to 830,000 B.P.D. The Western Hemisphere ex- ported 583,000 B.P.D. to Europe; the Middle East added 286,000 B.P.D. more. Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2. Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 eventually proved very successful. Its owners were obliged to provide it with new capital until the end of 1945, and while it is now making substantial earnings, the bulk of these earnings are being "plowed back" and will con- tinue to be "plowed back" for several years to come. The Anglo-Iranian Oil Company, the oldest company in the field, showed profits after taxes of ?9,624,938 in 1946 as compared to ?5,792,447 in 1945. Dividends declared against 1946 earnings amounted to ?6,041,250, which was over ?1,000,000 less than its royalty payments to the Iranian Government covering the same period. No figures are presently available as to earnings of other companies operat- ing in the Middle East. Refineries: The major refineries in the region are: Capacity Country Location (barrels per day) Iran Abadan 500,000 Palestine Haifa 90,000 Saudi Arabia Ras Tanura 115,000 Bahrein Bahrein 146,000 All of the above refineries are gradually being enlarged in capacity and ex- panded in functions. Plans have been announced for construction of a 75,000 barrel refinery on the Mediterranean Coast by Mediterranean Refining Company, jointly owned by Socony-Vacuum Oil Company and California Texas Corporation. Smaller refineries are located at Tripoli (Lebanon); Kermanshah (Iran); Khanaqin (Iraq). [81 HAIFA RAS TANURA BAHREIN ABADAN 90.000 115,000 146,000 500,000 BARRELS PER DAY Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Major Pipeline Projects: There are three major proiects planned for move- ment of Middle Eastern oil to the Levant Coast of the Mediterranean: 1. The Iraq Petroleum Company is now constructing or planning to con- struct two 16-inch pipelines from the Kirkuk field adjacent to the 12-inch lines which have been in operation since 1934. The new line to Haifa is expected to be completed in 1949, the one to Tripoli by 1951. 2. The Trans-Arabian Pipe Line Company has commenced the construc- tion of a 30-31 inch pipeline from the Saudi Arabian oil fields to the Levant Coast, expected to be completed in 1949. ? 3. A 34-inch line is proposed from Iran to the Mediterranean to be built by Middle East Pipeline Company, jointly owned by the Anglo-Iranian Oil Company and the Standard Oil Company (New Jersey) and Socony-Vacuum Oil Company. The latter two American companies have agreed to take sub- stantial quantities of Iranian crude oil after the project is completed. Kuwait production is also to be tied into this line. There has been some discussion of an additional pipeline from Kuwait to the Mediterranean, to be built by Gulf Oil Company and the Shell group. Relations between Companies: The companies holding concessions in the separate countries operate entirely independently of each other notwithstanding that there is some overlapping in ownership, viz: The Anglo-Iranian Oil Company, which exclusively holds the concession rights in southwest Iran, owns a 50% interest in the Kuwait Oil Company (operating in Kuwait) and a 2334% interest in the Iraq Petroleum Company and its "sister" companies (see below). It also holds a half interest in Con- solidated Refineries, Ltd., which owns and operates a 90,000 barrel refinery at Haifa. The Standard Oil Company (New Jersey) and Socony-Vacuum Oil Com- pany, which jointly own 233/4 % of the Iraq Petroleum Company and its [9) Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 For Release DP89-009 SEA pkokiewso V NT 0 &do , ' ,1,V ZAI.Aff . . ....t' :::FJ,.-..' t" , tt. e ' 4, , ?:?.;,,,,,;. if R Ku ... ..,, ..,..,,,,,,............6... ..0," jt.,,K r ," ...:.; ....,..;t LINE : .../ a' +PALK / V4FT ....,,....,''.*"'" '''ll'INE *.. 1NA F-' ,, ....,0 ...... IR kcoNt-',37,4t,, Half P ALEST .......- .....4.e , .. -----. r ...., YT R .%,,,,v s _ ..... .., , ----.. .. , ...??rip, - -... tri.,E. -. ....,, . NI-f, , r ...... 1 , I.) i',\N- re... L_. '0.4: ".... R 4 4.14 ..",?:"", .--1' - _ i'" 7livf?GtIAN ' Prnt 774. i > , - -. -- ? +..,',.7. ........... ABU H......AD......:i. RIYA\ Asam lik NURA 4 BQ41 Q, 4A .48 ill-MIA' Coti, Hofuf - 4 ' 'KHAN tt% 7 -111, IA4 ' :7-17.,at _ : ''1.44'4?66L V.OfAfti#144:'' P,:f!ttrit' Approved For Releas 08/07 i;,',414141A1:111/ rtlaitazn ' ,'1,41;4-14,141",r. -tqWfig.111;ri f4:111V:Ifftni7;:irM!1:7Pit* 41hit_4010.-4_14400#4**-4.440ittow.,_ ,400}bkAOSVIPVAStA.6*-04*10,r.M........'"-"......""".'?'"' tt':* " TRUCik -? 4 ARABIA .[. ' A R.:A h. A N :E. A PETROLEUM FACILITIES MIDDLE EAST 26A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 "sister" companies, have all but completed arrangements to acquire interests of 30% and 10% respectively in Arabian American Oil Company (operating in Saudi Arabia) and Trans-Arabian Pipe Line Company, which up to the present have been jointly owned by Standard Oil Company of California and the Texas Company. The British, American, French and Dutch owners of the Iraq Petroleum Company, Ltd. ( see page 18) are also the owners of two other companies, Mosul Petroleum Company, Ltd. and Basrah Petroleum Company, Ltd., holding separate concessions in Iraq. They are also the owners of Petroleum Conces- sions, Ltd., which directly holds an exploration permit in Hadhramaut and which wholly owns subsidiary companies holding rights in other Middle East countries as follows: Nature of Company Name Country Rights Petroleum Development (Cyprus) Cyprus Exploration Permit Ltd. Lebanon Petroleum Company, Ltd. Lebanon Exploration Permit Petroleum Development (Pales- Palestine Exploration Permits tine) Ltd. Syria Petroleum Company, Ltd. Syria Concession Transjordan Petroleum Company, Trans-Jordan Concession Ltd. Petroleum Development (Qatar) Qatar Concession Ltd. Petroleum Development (Trucial Trucial Coast Concessions on Coast) Ltd. 6 Sheikhdoms Petroleum Development (Oman Oman and Dhofar and Dhofar ) Ltd. Concession Standard Oil Company of California and the Texas Company which, as mentioned above have been joint equal owners of Arabian American Oil Company, and Trans-Arabian Pipe Line Company, are still equal owners of the Bahrein Petroleum Company, Ltd. [10] Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 ? ?t, ?'?,3.0"31 1.,3?31k, :1:',1'14t1f4W14;- _ 11. - Approve-Fibrikelease:20-It12/i)8/07 "CrA-RCiP80=00926A1:)006't10040001-2 . . CONSUMPTION OF Ell _ PERCENTAGE OF OF WORLD TOTAL PRE-WAR 1938 . Ll'illEtS 2 27c, AUSTRALIA It N. 1. l'?h% 7--%, --k 1,01,r, I,- ,,,li. ...,. .,. ,:,,11 .. 1,44001:Mg.1 ilt4(k14ifdni, ril 1 ?f 1?1??'''r'" 4 r - . i '''. ; ?????? 1 ." "rt1;iltti,'" "At , t it Itit i OP rt I i ,, . i?, ' .' : ,.1,....,.,?, Milli'''. L lit ' II' r , 1'1'1 tt!l? ! ? 't ','"?? - tttst...t."444 ""; t'ilttg PER CAPIlit CONSUMPTION OF PETROLEUM \ BARRELS DAILY 5,008$0 4,000, 'EUR0111-'1'15 "p?,11,, ittfltt 'r ?,E?, 10G \X,ORLD_WIDE 1938 ill i4 , . tlt litt"t 44' '44+4 4Itttt 44 'PA -13Stri, 11 ? .swir . r". 1:7 4=444* '??..'",?""""?:"':?.?iJr".,11t;????,3.'".,.ii:"'"?3?31",??? ? ? ? ,,? AN, 10,1 4011 :014:4.4;11 Approved For Rele e 2002/08/07 : CIA-RDP80-00926A000600040001-2 5???????? :4?-" ." : 4414; i tE" t.'044tpi, H:1,; Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 In 1928 the individual owners of Iraq Petroleum Company entered into an agreement (so-called "red line" agreement) under which they Committed themselves not to act independently "directly or indirectly in the production or manufacture of crude oil" within most of the area of the old Ottoman Empire. This agreement was believed to have been largely nullified by events of the war and steps are now being taken to modify it. The concessionaire companies confine their direct activities almost entirely to the production and refining of oil within their respective spheres. The owners of the Iraq Petroleum Company have the right to take oil produced by that company according to the proportion owned by each. Likewise the present owners and prospective owners of Arabian American Oil Company have agreed to take crude oil and products from that Company. In both cases the indi- vidual owners compete against each other in the marketing of the oil and oil products. (In marketing outside the Western Hemisphere Standard of Cali- fornia and Texas Company operate jointly through the marketing subsidiary California-Texas Oil Company, Ltd., owned by Bahrein Petroleum Company, Ltd.) Characteristics of Middle East Crude Oil: Although the oil is produced from widely separated fields and from different geologic formations, the oils now produced in the Middle East are generally similar in type. They are generally comparable to the crude produced in west Texas. They contain sulphur (al- though of an inert type) and require stabilization for handling in tankers. In the major fields, they range from 32' to 38" A.P.I. gravity. Their yield on "straight run" is approximately as follows, with variations, of course, in indi- vidual crudes: Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Gasoline 22% Kerosene 10% Gas Oil 28% Fuel Oil 40% The straight run gasoline is low in octane rating but can be easily im- proved up to standard by reforming, cracking and leading. The fuel oil has responded readily to cracking by both thermal and catalytic methods. Some of the crudes contain good lubricating APPROXIMATE YIELD OF MIDDLE EAST "STRAIGHT RUN" CRUDE OIL oil stock, but no lubes have been manufactured in the Middle East up to the present. The Anglo-Iranian Oil Company is now building a plant for this purpose at Abadan. The oil so far discovered in the Mosul area in Iraq has been of low gravity (16"), and has not been produced or utilized to any large extent. [12] Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RD ide ? WHITE OIL SPRINGS SAUDI ARABIA Haft Ke Khoctajci , Ratn HorMuz \ KlIalcifabosl ? LEGEND: Oil Fields R?13d5 Gets fields Railroads Retineries, r) Towns Pipelines A .tARI f cri`ciff Befillehsin IRAQ Bonder Shanpur GACH SARAt MIDDLE E-A?STRANGach FIELDS & OIL FACILITIES Saran Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 IRAN (SOUTHWEST) SUMMARY OF DEVELOPMENTS Concession: Original concession granted to William Knox D'Arcy in 1901 by Iranian Government. Concession contract revised, May 29, 1933. Area: 100,000 square miles. Term: To December 31, 1993. Holder: Anglo-Iranian Oil Company, Limited. Nationality: British. Ownership: British Government Oil Fields: 5.6% Burmah Oil Company, Ltd. 22% Public (Individuals) 22% Year Discovered Producing Wells Daily Avg. Produc- tion End 1947 Masjid-i-Sulaiman 1908 29 73,000 *Naft-i-Shah 1923 2 3,000 Haft Kel 1928 23 197,000 Gach Saran 1928/37 3 38,000 Naft Safid 1934/38 2 17,000 Agha Jan i 1937/38 12 144,000 Pazanun 1937 Shut In (gas field) Total 71 472,000 A good well was completed in the Lali field in 1946 and this field should be contributing to current production after pipeline facilities are installed. (13) Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 IRAN (SOUTHWEST) SUMMARY OF DEVELOPMENTS, Continued Pipelines: From To Length Miles Diameter Capacity Completed Masjid-i-Sulaiman Abadan 133 10) Masjid-i-Sulaiman Abadan 133 10) 80,000 1916-1927 Masjid-i-Sulaiman Abadan 133 12) Haft-Kel Abadan 136 12) Haft-Kel Abadan 136 12) Haft-Kel Marid 124 12) 205,000 1929-1938 Haft-Kel Kut Abdullah 61 12) Naft Safid Wais 32 10-12) (White Oil Springs) *Agha Jani Abadan 97 12) 150,000 1945 Agha Jani Bendur Mashur 45 12) 70,000 1946 Gach Saran Abadan 166 12) 40,000 1940 Naft-i-Shah Kermanshah 146 3) 2,600 1935 Refineries: The Company operates one of the largest refineries in the world at Abadan. It has a crude distillation capacity of about 500,000 barrels daily and handled a daily average of 446,000 barrels in December, 1947. It has a daily cracking capacity of 125,000 barrels, and facilities for manufacture of 100 octane gasoline, built during the war: Additions to the refinery are still under way, including a small lubricating oil plant, a catalytic cracking plant, and increased storage, pumping, water, steam and electrical facilities. A subsidiary company, Kermanshah Petroleum Company, operates a small plant at Kermanshah, capacity 2100 barrels, on crude from the Naft-i-Shah field. * Number of lines varies from two to four in the course of the route, the system being not yet complete. [141 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 IRAN SUMMARY OF DEVELOPMENTS, Continued PRODUCTION BY YEARS ? IRAN TOTAL PRODUCTION TO 1929 301,551,000 BARRELS YEAR DAILY AVERAGE TOTAL THOUSANDS OF BARRELS 1929 115 42,145 1930 126 45.828 1931 121 44,376 1932 136 49,471 1933 149 54,392 1934 159 57,851 1935 157 57,273 1936 171 62,718 1937 213 77,804 1938 215 78,372 1939 214 78,151 1940 181 66,317 1941 139 50,777 1942 198 72,256 1943 204 74,612 1944 279 102,045 1945 358 130,526 1946 402 1,46,614 1947 420 153,320 1929 '30 '31 '32 '33 '34 '35 '36 '37 '38 '39 '40 '41 '42 '43 '44 '45 '46 '47 TOTAL PRODUCTION THROUGH 1947 ? 1,746,399,000 BARRELS [151 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 IRAN (SOUTHWEST) SUMMARY OF DEVELOPMENTS, Continued Because of lack of previously established communities and its own large per- sonnel requirements, the Company has had to provide housing and utilities for many of its employees not only in outlying field camps, but also in Abadan, where there is a Company-built city of about 125,000 inhabitants. The Com- pany's investment in housing and other facilities for employees has about equalled its investment in wells and industrial equipment. During 1946 alone its investment in housing and utilities was over ?2,800,000 ($11,200, 000) and a further ?600,000 ($2,400,000) was spent on schools, shopping centers, cinemas, work canteens, temporary accomodations, etc. during the year. This construction is continuing as rapidly as materials become available. The Company provides hospitals and medical attention, schools and indus- trial training, and assists in higher education for those qualified. In 1946 it contributed ?150,000 ($600,000) to the University at Tehran for technical equipment to enlarge educational facilities. In past years the Company has provided a number of free amenities to its employees in addition to salaries, i.e., housing, free rations and supple- mental allowances for the high cost of living. Recently, however, wages have been raised to provide for these extra emoluments and employees are now required to pay their own housing and living costs. The change in policy was made to give the employees a better understanding of Company-employee relations and the management of their personal affairs. [161 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 IRAQ SUMMARY OF DEVELOPMENTS Concessions: The entire country of Iraq has been leased under three conces- sions held by three companies all having identical ownership and control, viz: 1. Districts of Mosul and Baghdad East of Tigris River Granted to Iraq Petroleum Company, Ltd. (formerly Turkish Petroleum Co.) in 1925 as culmination of protracted inter- national negotiations. It amounted to the revival and revisal of a concession granted by the Ottoman Empire to British and German interests before World War I. Term: 75 years from March 14, 1925. 2. West of Tigris River North of Lat. 330 . Originally granted in 1932 to British Oil Development Com- pany, an independent British group taken over some years later by the present owners. Name changed to Mosul Petroleum Company, Ltd. Term: 75 years from May 25, 1932. 3. District of Basrah, etc. (southern Iraq) Granted in 1938 to Basrah Petroleum Company, Ltd. Term: 75 years from November 30, 1938. Nationality of above companies: British [171 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 vs M., .? ADorov For ReIeae 00 TURKEY 0040001-2 SY PIA K iCuk TI:I.ANS-JORDAN SAUDI ARA]IA QASAB 146,Shuco ,J./VVAN Nit4iss NAJMAH /4444 QAIYARAI-1 ? AJfurt;K?pru Sulaima-ni) Chemchemal Taug Tuz Khurmatli . ? . . .e / ? ??? ? ? oditho -\\ MIDDLE EAST ? IRAQ ?./ FIELDS &\QILFACILL_ Sonlarra LEGEND: it:)1 Fields ?P1 lines 0 Tou.n. * RefiAllfirovgAFsitifillArgase 2.9.02/95497.: CIA-- 80-00 ? ? ? A00060 /Proposed Pipelines 111101.11M1 Di awa Kburyisin / ./ NAFT-I-SHAA, hahraban Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 IRAQ SUMMARY OF DEVELOPMENTS, Continued Ownership of all three companies: Anglo-Iranian Oil Company (British) 23.75% Compagnie Francaise des Petroles (French) 23.75% Royal Dutch-Shell (Dutch-British) 23.75% * Near East Development Co. (American) 23.75% ** C. S. Gulbenkian 5.00% * Owned jointly by Standard Oil Company ( New Jersey) and Socony-Vacuum Oil Co. ** An Armenian, now a British citizen, who figured largely in original Turkish Petroleum Company negotiations. Production: The production from Iraq has thus far come from the, Kirkuk field in concession 1. Some heavy oil has been found in shallow wells in the Mosul area (in concession 2) but it has not been commercially developed except for minor local consumption. Production from the Kirkuk field has been limited by the capacity of the 2 pipelines to the Mediterranean?about 92,000 barrels daily at the end of 1947. 31 producing wells and 48 observation wells had been completed. The wells are less than 3500 feet in depth. The field is very large and prolific and could produce considerably more. The A.P.I. gravity is 36?. The oil fields in the Mosul (Qaiyarah) area are as follows: Field Discovered Wells Completed A.P.I. Gravity Jawan 1933 5 16 Najmah 1933 22 16 Qaiyarah 1927 34 16 Qasab 1935 5 16 [I 8) Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 IRAQ SUMMARY OF DEVELOPMENTS, Continued Some oil of -better quality (32") was discovered in 1939 in the Ain Zalah field in the northern part of concession 2. Seven wells have been completed there at depths of 5000-6000 feet, but so far no oil has been shipped from this comparatively remote area. Further drilling is now in progress. Test drilling is also under way in the Basrah area (Concession 3). IRAQ ? PRODUCTION FROM KIRKUK FIELD YEAR DAILY AVERAGE TOTAL THOUSANDS OF BARRELS 1936 81 29,748 1937 86 31,447 1938 87 31,648 1939 79 28,963 1940 49 17,882 1941 29 10,502 1942 48 17,437 1943 69 25,376 1944 82 29,875 1945 90 32,996 1946 92 33,438 1947 92 33,494 PRODUCTION PRIOR TO 1936 36,492,000 BARRELS L191 P I. A 1 q ;0 -* 0 t4 44. 0 ....1 _4401% 01 liy.. -Ai . 041 so 0 ..... , ,.....,,,r. zi?, Ad ? ' a el el1 I 1 1 !? .41111 Ott% lir WO ii al..._rap?."111.- Ili...0?.111(11 I Ma- mi Ori,10- . -- I / I riTimi-Vlail firerio.a. 1 p oiarilla I , iffim ;;;gr 1 I l'IN.g_ii I I I 1936 '37 '38 '39 '40 '41 '42 '43 '44 '45 '46 '47 TOTAL PRODUCTION THROUGH 1947 ? 359,298,000 BARRELS Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 IRAQ SUMMARY OF DEVELOPMENTS, Continued Pipelines: There are two 12-inch pipelines from the Kirkuk field to the Mediter- ranean coast, one terminating at Haifa, Palestine, the other at Tripoli. The Kirkuk-Haifa line is 621 miles, and the Kirkuk-Tripoli line 532 miles, in length. Construction of duplicating 16 inch lines is now under way, but progress is governed by the availability of steel pipe being fabricated in England. The Haifa line is expected to be completed in 1949, the Tripoli line in 1951. In addition to the operations of the Iraq Petroleum Company, the Khanaqin Oil Company (owned by the Anglo-Iranian Oil Company) produces oil in the Naft Khaneh field in eastern Iraq. From this field there is a pipeline to a company-owned refinery at Khanaqin, of 6500 barrels daily capacity. Refineries: The I.P.C. has a stabilization plant at Kirkuk which was used as a topping plant during the war. Except for this and the Khanaqin plant, men- tioned above, there are no refineries in Iraq. The Consolidated Refineries, Limited, jointly owned by Anglo-Iranian and Anglo-Saxon Petroleum Company (Shell group) operates a refinery of about 90,000 barrels daily capacity at Haifa, where most of the oil from the Kirkuk field is presently being refined. It is intended in the future to double the capacity of this plant and to install lubricating oil manufacturingfacilities. The Iraq Petroleum Company owns a small refinery at Tripoli which has been shut down since the early part of the war. The American interests in the same group have announced plans for the building of an additional refinery at this point. mo Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 ' _ Approved or Release 2002/08/07 : CIA-RDP -0\ 926A000600040001-2 ! Kt f IHADai ',of won\ \yMrn ()usu. -4/ BAH RAH 1 Kuwait Magwa Camp 0 Madaniyat As Subai hiya K -11 !w, 7 4-F j *3 Tpwns , RDP8olocw.gAjN4g6000Ll000i -2 ' r(LIWAr. - n All ILITIES "43, - Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 KUWAIT SUMMARY OF DEVELOPMENTS Concession: Granted by Sheikh of Kuwait to Kuwait Oil Company, Ltd. in 1934. Area: about 6,000 square miles. Term: 75 years from December 23, 1934. Nationality of Company: British. Ownership: Anglo-Iranian Oil Company (British) 5 0 % Gulf Exploration Company ( American) 5 0 % - Production: The Burghan field, discovered in 1938 at a depth of about 3700 feet, is one of the largest single oil fields in the world, if not the largest. It is believed to contain reserves of about 9 billion barrels. Operations were practically discontinued during the war, but have been actively revived during 1946 and 1947. A field gathering system, pipeline to the nearby coast and oil shipping terminal have been constructed. Crude oil shipments to Europe were com- menced in June 1946, and are now running at the rate of about 100,000 barrels a day. At the end of 1947 there were 13 wells on production and five drilling rigs in operation. The field produced 5,931,000 barrels in 1946, 17,850,000 in 1947. The potential productive capacity of the field cannot be fully utilized until additional outlets are developed. It is proposed in the future to tie Kuwait production into a pipeline to be constructed from Iran to the Mediterranean by Anglo-Iranian Oil Company, Standard Oil Company (New Jersey), and Socony-Vacuum Oil Company. There is also a plan for an additional pipeline to the Mediterranean to be built jointly by Gulf Oil and the Shell group. [213 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/0U- *Ras al Misha'ab Mann ABU HADRIYA atif Dammam DAMMAM AI K hobar ? Manama MIDDLE EAST FIELDS & OIL FACILITIES SAUDI ARABIA, BAHREIN & QATAR PAHREIN iSTAND DOhat a Fiust7 DUKHAN Do, Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 LEGEND: 'A Oil Fields Pipelines 0 Towns Refineries Roads ? Proposed Pipelines Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Concessions: Area: Term: SAUDI ARABIA SUMMARY OF DEVELOPMENTS Original concession _granted to Standard Oil Company of Cali- fornia May 29, 1933 which was augmented in May, 1939. As- signed to and now held by Arabian American Oil Company. 440,000 square miles, more or less. To July 14, 1999, (supplemental area to July 21, 2005) Nationality of Company: American Ownership: Until present, owned jointly by Standard Oil Company of California and Texas Company. Under recent negotiations which require certain formalities to be completed, the owner- ship will be: Standard of California Texas Company Standard of New Jersey Socony-Vacuum Oil Co. 30% 30% 30% 10% Exploration was commenced in September, 1933, and test drilling in 1934. However, results were discouraging until the finding of commercial production in the Dammam field in 1938. [221 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 SAUDI ARABIA SUMMARY OF DEVELOPMENTS, Continued Oil fields: (Status at end of 1947) Field Year Discovered Completed Oil Wells Producing Wells Daily Average Production Dammam 1938 33 32 100,000 Abqaiq 1941 28* 18 200,000 Abu Hadriya 1940 1 Shut in Qatif 1945 2 1 5,000 Total 305,00 * Includes 3 wells in so-called -Buqqa" area, now shut in. This area, in which oil was dis. covered in 1947, has proved to be an extension of the Abqaiq Field. Pipelines: (status middle 1948) To Completed Size Daily Capacity Length Miles From Dhahran Ras Tanura 1939 10" 63,000 33 Refinery Dhahran Ras Tanura 1946 12" 123,000 23 Terminal Dhahran Bahrein 1945 12" plus land loops 117,00 34 Abqaiq Dhahran 1946 12"-14" 100,000 40 Abqaiq Dhahran 1947 14'. 105,000 40 Abqaiq Ras Tanura 1948 30-20-22" 326,000 61 Refinery Work has also commenced on an 1100-mile 30-31 inch pipeline from the Abqaiq field to the Mediterranean, which will have a capacity of 300,000 barrels daily when completed in 1949. This is being built by Trans-Arabian Pipe Line Company, an American company owned by the same group. Refineries: Aramco has one refinery located on Ras Tanura Peninsula. (A 3,000 barrel plant completed in 1940 has been abandoned.) Built as a mili- tary project in 1943-1945 with an estimated capacity of 50,000 barrels daily, the refinery is actually running over 115,000 per calendar day. This has been made possible largely by augmenting pumping and charging equipment. A large part of the output is being taken by the United States Navy. [231 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 SAUDI ARABIA SUMMARY OF DEVELOPMENTS, Continued PRODUCTION BY YEARS. SAUDI ARABIA YEAR DAILY AVERAGE TOTAL BARRELS 1939 10,778 3,933,903 1940 13,865 5,074,838 1941 11,809 4,310,110 1942 12,412 4,530,492 1943 13,337 4,868,184 1944 21,296 7,794,420 1945 58,386 21,310,996 1946 164,229 59,943,766 1947 246,169 89,851,646 1948 Est 410,000 150,060,000 [24] PRODUCTION PRIOR TO 1939 579,880 BARRELS 1?li s. 4 0 % .e 1 1,4 01Ih 4:0, 17 to. 1_1b -1 el 41 1:14 il i i :111 ,1 111.1:4:-"R71?41: I lb' 011 Iilt, IN=------ 5g?71-0 i I Isito!ii I F 1 1.., ? 4 Wag ju, -ruse, 7" 111110-__. -.Eapipzik ritiaW; .0^110:1 41. )11111,...1 -mOrda I , 16, :Jail x. Logei 'I i pzei-..-_. ?. L 1939 '40'41 '42 '43 '44 '45 '46 '47 '48 EST. TOTAL PRODUCTION THROUGH 1947 ? 202,198,235 BARRELS Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 SAUDI ARABIA SUMMARY OF DEVELOPMENTS, Continued RELATIONS WITH GOVERNMENT AND PEOPLE Aramco employs upwards of 15,000 Saudi Arabs and its local payroll presently runs in the neighborhood of $1,500,000 per month. The majority are unskilled laborers. Starting rates of pay for this group have increased from less than 1 riyal (30c) per day in 1934 to 3 riyals (90c) at present. Rewards are given for continuity of service and higher wage rates are, of course, paid according to degrees of skill acquired before, or during the course of, employment by the Company. While these rates are far below those paid in western countries, local labor is not "cheap" in terms of productivity and performance. Entering a country whose mode of life had changed little, if any, since Biblical times, Aramco has had to teach its local workers the simplest tasks. The training of skilled workers has been proceeding with good success, but will require considerably more time before the number so trained meets requirements. In addition to industrial training, the Company has for several years operated primary schools for employees and their children. As in the case of the Anglo-Iranian Oil Company, Aramco has had to construct housing for its Arab as well as Ameri- can employees, and the development and improvement of local communities in 'which employees and their families live presents a long-range and .large- scale problem with which the Company feels natural concern and is pre- pared in all reasonable ways to assist. Now under way is the construction of a 7-mile railroad pier to deep water and other port facilities at the town of Dammam, and of a railroad from that point to Dhahran and Abqaiq. This will result in the establishment of an important public port on the Persian Gulf coast and the development of a comparatively large community there. The present construction, although being financed and supervised by the Com- pany, is being undertaken as. a governmental project, and the King has hopes of having the railroad extended eventually 350 miles inland to the capital city, Riyadh. [253 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 SAUDI ARABIA SUMMARY OF DEVELOPMENTS, Continued The Company also has introduced and maintains modern hospitals and health centers in the area of its operations. Its relations with the government and employees have at all times remained harmonious, and great care is exercised in the formulation and administration of policies which will maintain mutual respect, confidence and fair dealing. The Company has given technical assistance to the government in many local problems, including the supervision, by Company engineers, of the con- struction of a fairly large agricultural project at Al Kharj, southeast of Riyadh. It is presently sponsoring a group of American agriculturalists for the appli- cation of improved farming methods in the country. During the war, when the great reduction in revenues from pilgrim traffic and other sources placed the government in financial difficulties, the Company assisted it with advances from time to time, the total of which exceeded $10,000,000. [26) Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 RAS TANURA FINERY MOM Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 BAHREIN SUMMARY OF DEVELOPMENTS Concession: Originally granted in 1925 to Eastern and General Syndicate, an independent English group. Assigned to Bahrein Petroleum Company, Ltd., in 1930, after obtaining approval of British Government. Area: Original concession contemplating mining lease Of 100,00 acres has been extended to cover entire Bahrein Archipelago. Term: 55 years from June 19, 1940. Nationality of Company: Canadian. Ownership: Standard Oil Company of California 50% Texas Company 50% Oil Field: Only one field has been discovered, in central portion of Bahrein Island. 66 wells were producing as of January 1, 1948. Refinery: The Company operates a refinery of about 146,000 barrels daily capacity only a few miles from the oil field. The refinery includes thermal and catalytic cracking, aviation gasoline manu- facturing facilities, SO2 plant, .asphalt plant, etc. It handles 30,000 to 35,000 barrels daily of Bahrein crude, and 111,000 to 116,000 barrels of crude transported by submarine pipeline from Dhahran, Saudi Arabia. AM Al Khobar Manama cz Fl BA IS. [27) Approved r Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Bahrein SUMMARY OF DEVELOPMENTS, Continued BAHREIN ? PRODUCTION BY YEARS YEAR DAILY AVERAGE TOTAL THOUSANDS OF BARRELS 4,645 7,762 8,298 7,588 7,074 6,794 6,240 6,572 6,714 7,309 8,010 9,411 1936 13 1937 21 1938 23 1939 21 1940 20 1941 18 1942 17 1943 18 1944 19 1945 20 1946 22 1947 25 PRODUCTION PRIOR TO 1936 1,582,000 BARRELS 1936 '37 MIME ill '38 '39 '40 '41 '42 '43 '44 '45 '46 '47 TOTAL PRODUCTION THROUGH 1947* 84,999,000 BARRELS Production during the first quarter of 1948 totalled 2,668,000 barrels, a daily average of 29,000. As in the case of the other oil companies, Bapco has made notable progress in the training and education of its Bahrein employees, numbering nearly 6,000, and has introduced free medical care in its modern well-equipped hos- pitals, as well as other employee benefits. The company's relations with the Government and people of Bahrein have at all times been harmonious. f281 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 Approv PERS d For Release 2002/08/07 : CIA- AN UL F QATAR SUMMARY OF DEVELOPMENTS CONCESSION Granted May 17, 1935 by Sheikh of Qatar. Held by Petroleum Development (Qatar) Ltd. NATIONALITY OF COMPANY Khobar ammo HREIN BRITISH OWNERSHIP Petroleum Concessions, Ltd., in turn owned by same group owning Iraq Petroleum Com- pany. (Seepage 18). OIL FIELD Dukhan field in western part of Qatar Pen- insula discovered in 1939. Only three wells were drilled, which were plugged as a defensive measure during the war. Operations were re- sumed in 1947. The field is of major importance. PIPELINE A pipeline is planned from the field to the east coast of the peninsula. [29) tr, et) ? DP80-009 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 EXPLANATION OF API GRAVITY AND CONVERSION TABLE, BARRELS TO TONS, FOR OIL OF GRAVITY 25? API to 40? API The index of specific gravity used in the petroleum industry in the United States, is expressed in degrees API. It is based on a ratio between the weight of equal volumes of oil and water. For ease in conversion the API index is commonly calculated for oil at 60? F temperature. The following table is based on this standard temperature. Pounds Pounds per Degrees per 42 gal. Barrels per A.P.I. Gallon barrel ton* 25 7.529 316.2 7.07 26 7.481 314.2 7.12 27 7.434 312.2 7.17 28 7.387 310.3 7.22 29 7.341 308.3 7.28 30 7.296 306.4 7.33 31 7.251 304.5 7.37 32 7.206 302.7 7.42 33 7.163 300.8 7.46 34 7.119 299.0 7.50 35 7.076 297.2 7.54 36 7.034 295.4 7.59 37 6.993 293.7 7.63 38 6.951 301.9 7.67 39 6.910 290.2 7.71 40 6.870 288.5 7.76 * In contrast to the practice in the United States, when crude oil is measured in barrels of 42 U. S. gallons, the unit of measurement under Middle East oil concessions is usually the "ton," i.e., the English ton of 2240 pounds. [301 Approved For Release 2002/08/07 : CIA-RDP80-00926A000600040001-2 PETROLEUM DEVELOPMENT LTD. (CYPRUS) ',L.,/ SUBSIDIARY OF PETROLEUM CONCESSIONS, LTD. EXPLORATION PERMIT ONLY TRANS-JORDAN PETROLEUM CO, LTD. ? SUBSIDIARY OF PETROLEUM CONCESSIONS, LTD. LEBANON PETROLEUM COMPANY, LTD. 0 SUBSIDIARY OF PETROLEUM CONCESSIONS, LTD. EXPLORATION PERMIT ONLY PETROLEUM DEVELOPMENT, LTD. (PALESTINE) CD SUBSIDIARY OF PETROLEUM CONCESSIONS, LTD. EXPLORATION PERMIT ONLY PETROLEUM CONCESSIONS, LTD. EXPLORATION PERMIT ONLY PETROLEUM DEVELOPMENT, LTD. () (OMAN & DROFAR) SUBSIDIARY OF PETROLEUM CONCESSIONS, LTD. PETROLEUM DEVELOPMENT, LTD. ri) (TRUCIAL COAST) SUBSIDIARY OF PETROLEUM CONCESSIONS, LTD. CONCESSIONS AND ONE EXPL.PERMIT PETROLEUM DEVELOPMENT CR) (QATAR) LTD. SUBSIDIARY OF PETROLEUM CONCESSIONS, LTD. EXPIRES 2011 SYRIA PETROLEUM COMPANY, LTI. C.) SUBSIDIARY OF PETROLEUM CONCESSIONS, LTD. MOSUL PETROLEUM CO.. LTD. CONCESSION: TEAR3 PRUM JULY 3, 1113 AREA ALL Of IRAQ *EST Of DIE EIGRIS RIViR AND NORTH OF 13' LATITUDE APPROXIMATELY 41,M0 SQ. MILES EXPIRES 281 BASRAH PETROLEUM CO, LTD. CONCESSION: 4 --- TERM-75 YEARS FROM DEC. 4, 1130 AREA?ALL OF IRAQ NOT COVERED BY I.P.C. & B.O.D. CONCESSIONS. EXPIRES 2113 IRAQ PETROLEUM Afil&PAII For Release CONCESSION: TERM-75 YEARS FROM MARCH 14, 1125 AREA?PROVINCES OF BAGHDAD AND MOSUL EAST OF THE TIGRIS RIVER EXPIRES 1011 OWNERSHIP: SHELL OIL COMPANY ANGLO-IRANIAN OIL CO., LTD. &LE. FRANCAISE DES PETROLES STANDARD OIL CO. (NEW JERSEY> SOCONY-VACUUM OIL CO., INC. PRIVATE INTEREST (C.I. GULBENKIAN) 002/08/07 : CIA-RDP80-00926A000600040001-2 Cfc 23.75% 21.75% 11.75% 11.175% 11.175% 5. % IV % ETROLEUM DEVELOPMENT (CYPRUS) LTD. ANGLO-IRANIAN OIL COMPANY, LTD. CONCESSION: TERM-9 "EARS FROM DEC .71 97? AREA-100 1111 S(3. MILES OWNERSHIP: BRITISH GOVERNMENT 56-7. BURMAH OIL 00 22% OTHER (INDIVIDUALS Ws ii-% Imeommoimmomim ...... .011MIIIINININIMPOINIOW 14 KHANAQIN PETROLEUM COMPANY OWNFRSH1P? ANGLO-IRANIAN OIL CO., LTD KUWAIT OIL COMPANY, LTD, CONCESSION. AREA ALI OF KUWAIT EXPIRES 2511 OWNERSHIP ANGLO-IRANIAN OIL CO. LTD 50% GULF EXPLORATION COMPANY 50% 100% - - - _.... , 1ARABIAN (a) ! AMERICAN OIL COMPANY CONCESSION. TERM?ORIGINAL AREA- 91 "EARS FROM .ILL 932 .4 0 OiTIONAL ARIA Oc. E A1i7. FROM A.!. .; 931 NPF,1 Aptsi)f)Y1M0i,e, 0?, 0,000, 011.1111.1111.11RIRAG,A, ,00000000.0u 0000,..00..01.04K.0.1wAslamm.0a48.1111,04.40.1404114,0104-001.6.4.0.0?001004?000?..01.0007,..0.00000.001.0,000,000 0 400 01.040.1111.60 BAHREIN PETROLEUM COMPANY, CL/NeLSSIQN IERM EARS FROM 40i9 , 4 ?I MED , t 04,4SA8 ,..a.. , s'*1 SYltIik i .4.:-. WAN .-----0"16'ii ZALAik' ''''''''k J * IRAQ of smut, comPANy, ,..., SYRIA PETROLEUM QAtARAH LTD. C) iNAJMAH KIR LEBANON PETROLEUM COMPANTYr,IPLT?Dli.*ar--) COMPANY, pipE, LINE 1 PALKANA AQIN , ITERRANEAN SEA s rit?L/BANON ...-"MOSIIL PETROLEUM COMPANY. LTD. ?,..-0? PETROLEUM - *KERMANSNAH '4 ,,, FF,i-SHRAoHilum' COMPANY 4 - r, 7 PIRSAGAT NEFTE 01/ALA SAWN! 01/EL AN KISHLAK Haifa. Bithdad PETROLEUM DEVELOPMENT E) LTD.D A xi- IRAQ ASJIS-1461,11 MAN IIA. 1 S. 11 ESTINE "RP' / -0 COMPANY, LTD.0 ??,4- '4'7:40444 1.0.0w1004,,,041., 04- - 0 ,i00$ '41 4 ? 4f1'011A1"- l'4,441x HITE OIL'SP#INGS BASRAH PETROLEUM .."A HA enti ' TRANS-JOROPN PETROLEUM/t k ABU ,,k44,4114-44 Ulla a, 'st-Tk DURBA TRANS-ARABIAN PIPE LINE CO. HAS COMPANI LTD. 4 Basrahli, K. Amu., ARAN ' 4t9 t /44' '"*,.? MIT OIL CD., LTD. an , OPERATION OF PIPELINES AND ANCILLARY CONCESSION FOR CONSTRUCTION AND --