CAIRO, Egypt, July 14. Another corner of the world has been opened to American commercial interests with the granting of an oil concession in the Arabian Saudian Kingdom to the Standard Oil Company of California by King Ibn Saud.
According to advices from Jeddah, the Arabian Saudian Government published today in Um El Kura, its semi-official organ at Mecca, a decree giving exclusive rights of exploration for oil and exploitation of any found in Eastern Arabia to the company.
It already has a concession on the Bahrein Islands in the Persian Gulf, where a fairly large quantity of oil has been found. The geological formation in that region gave promise that oil also would be found on the mainland in Arabia. The company's representative at Jeddah succeeded in getting a draft concession from the King, which he sent to America.
The company agreed to the terms of the concession with certain modifications, which now have been accepted by the Saudian Government, and the concession has been ratified. Exploration work is expected to begin soon. It is believed that if oil is found it will revolutionize all Arabia, tranforming the desert into an industrialized country.
Wireless to the New York Times
LONDON, July 14. It had been predicted in London that King Ibn Saud would pursue his policy of making friends with distant powers instead of giving concessions to near neighbors, like France and Great Britain, who might through industrial works obtain a foothold in his country as they have done in Palestine, Iraq and Egypt.
Should the American company succeed in extracting oil it is thought King.Ibn Saud will share considerably in the profits by means of export duties.
Return to Vinnie's Home Page
Return to International Energy Page