D'Arcy Agreement

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ID:7786 بخش:

به روز شده:Friday 18th September 2009

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In 1900 William Knox D'Arcy agreed to fund a search for oil and minerals in Iran. Negotiations with the Mozaffaroddin Shah Qajar began in 1901 and with the offer of £20,000 for a sixty year concession to explore for oil was signed in May covering an area of 1,200,000 km sq. The concession stipulated that William D'Arcy would have the oil rights to the entire country except for five provinces in Northern Iran. In exchange the Iranian government was given 16% of the oil company's annual profits, an agreement that would haunt the Iranians up until today. After the D'Arcy concession the British became much more concerned with the stability of Iran because of their reliance on the country's vast oil reserves.A drilling team under George B. Reynolds was sent to Iran and began to search. In 1903 a company was formed and D'Arcy had to spend over £500,000 to cover the costs. False hopes were raised in 1904 and D'Arcy was forced to find further financial support, with the Burmah Oil Company Ltd. Agreeing to put up to £100,000 into the venture in return for much of the stock.Drilling in southern Persia at Shardin continued until 1907 when the search was switched to Masjed Soleyman. Drilling began at one site in January 1908 and at another nearby in March. By April with no success the venture was close to collapse and D'Arcy almost bankrupt, but on May 16 there were encouraging signs and on May 26 at 360 metres, they struck oil.

Tags:British, D'Arcy Agreement, Iran, Iranian, Masjed Soleyman, Mozaffaroddin Shah, Northern Iran, Persia, Qajar, Shah, William Knox D'Arcy

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