Iranians Expect £600,000 a Year from Oil Grants

Wanganui Chronicle, Volume 80, Issue 68, 22 March 1938, Page 9

Iranians Expect £600,000 a Year from Oil Grants

TEHERAN. The oil concessions granted by the Iranian Government to two American companies, the Ameranian Oil Co., Ltd., of Delaware, and the Iranian Pipe Line Co., of lowa, have caused wide interest here. The second concession is concerned solely with the laying of a pipe line. The drilling for oil will he in the north and north-east provinces of Iran, and both concessions arc for 60 years. Three years are allowed fur prospecting, and it is evident that big things are hoped for from it clause in the concession which states that in the event of oil in sufficient quantity being found, the company must continue development until a quantity of at least 6,000,000 tons a year is available. Although both companies are American, the royalties payable to the Iranian Government arc quoted in sterling. These are: Is a lon for oil sold in Iran or exported, and 20 per cent of any 1 amount payable Io the ordinary shareholders uver and above a dividend of 0 per cent. The total of these Iwo to be not less than £300,000 a year from the fifth to the ten I h years, up Io £600,000 from the fifteenth to the end of the, lease. The employment of Iranian labour is stipulated, and also, as far as possible, for the commercial and technical stalls. As soon as oil is being exported in com-i mcrcial quantities the company is to make a grant of £lO,OOO a year for the training of Iranian students in the, United States.