Appendix 112: Lermitte to London 10/5/’52

An Appreciation of the Political Aspects by the Company's Operations in the Trucial Shaikhdoms, with particular reference to Abu Dhabi

Shortly after the completion of our drilling operations at Ras Sadr, the Ruler of Abu Dhabi asked to be informed of the Company's future plans for operating in his territory. Only the vaguest forecast of our intentions could be given to the Ruler, and he made a strongly worded protest against our withdrawal from Abu Dhabi with no immediate plans to return there. This complaint was first made prior to the activity preparatory to the Abu Dhabi/Saudi Arabian frontier talks, and the opportunity was taking of pointing out to the Ruler that due to the lack of interest which he had taken in the western part of what we considered to be his territory, the Saudis had succeeded in having it enveloped in a Restricted Zone, and that the Company had at least temporarily, lost the use of this considerable area in which to operate. This criticism of the Al bu Falah has been voiced many times in the past, and was by no means new to the Ruler, and since the creation of the Restricted Zone he had become increasingly sensitive to his short coming in this respect. However, he was left with a strong argument, which he promptly used. The Company has withdrawn from Abu Dhabi territory after having drilled only one exploratory well, he stated, and if it cannot give him an assurance that it would operate in his territory in the near future, then the Company should abandon its concession for that part of Abu Dhabi which is not in the Restricted Zone.

It is now nearly 18 months since our operations at Ras Sadr came to an end, and with the Ruler's increasing impatience over our inactivity comes many reiterations of his demand that the Company should give up its concession.

Although no drilling obligations are contained in the clauses of our Trucial Coast concessions (with one exception of Sharjah, postponement1 of which has been arranged until 1957) the Rulers have for a long time past tried to hold us to what would, perhaps, legally be described as “The Spirit of the Concession”. They consider that the Company has a moral obligation to explore and develop the resources of their territories.