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:
Attachment | Size |
---|---|
![]() | 4.09 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 --