Aircraft-for-oil deal

Press, Volume CXIV, Issue 33425, 5 January 1974, Page 11

Aircraft-for-oil deal

(N.Z.P.A.'Reuter —Copyright) PARIS, January 4. The Gulf State of Abu Dhabi is negotiating the purchase of 32 French Mirage fighter - bombers in a multi-million-dollar aims deal in exchange for oil, according to Government officials in Paris. The Emir of Abu Dhabi (Sheik Zayed Ben Sultan E! Nahyan) is expected to pay an official visit to France soon to clinch the deal. The negotiations began in July, 1972, when the Emirate’s Prime Minister (Sheikh Khalifa Bin Zaid)

visited Paris, at which time the Gulf State was thinking in terms of only 16 Mirages. She now wants two squadrons of them. The Abu Dhabi Air Force is at present equipped with about 50 aircraft, including about 20 serviceable, but ageing. Hawker Hunters. Libya and Saudi Arabia are among Arab countries which have bought Mirage jets. PETROL UP IN U.S. It is reported from Washington that the price of petrol at the pump rose to the equivalent of NZ34c a gallon in many parts of the United States today, and is expected to be increased by a further NZ7c by March, partly to compensate dealers

because they have less petrol, and partly to reflect the rising cost of crude oil.

Mr William Simon, the head of the Federal Energy Office, said at a Washington news conference that America’s consumption of oil was 500,000 barrels a day below the forecast for the present week, and 800,000 barrels a day below the forecast for the last four weeks. Mr Simon added that the (Internal Revenue Service had j checked more than 2300 service stations throughout the [country during last weekend, and found some of them charging as much as SNZI.34 a gallon for petrol among 409 price violations. KUWAIT TAKE-OVER

Kuwait has reached agreement with two Western oil companies for a 60 per cent Government take-over of their operations in the Gulf State.

In an interview with the Beirut daily, “An Nahar,” the Kuwait Minister of Defence and of the Interior (Sheikh Saad El Abdullah) said that the agreement, affecting the Gulf Oil Corporation and British Petroleum, would soon be introduced into Parliament, and would leave the door open for total nationalisation within five years. Gulf and B.P. jointly own the Kuwait Oil Company, which produces more than 90 per cent of Kuwait’s crude [oil.

“The negotiated agreement preserves the Government’s right to raise, gradually, its participation share to 70, 80, 90, or 100 per cent by 1979,” Sheikh Saad said.

“This means that the bill ito be introduced into Parliament will stipulate complete nationalisation when technical crews and experience in management, drilling, prospecting, and marketing are all ensured.”