The World-Struggle for Oil

by Pierre Paul Ernest L'Espagnol de la Tramerye

But for several years, the Anglo-Persian has no longer been content with Persia, rich as it is. Its ambitions now extend to the whole world. It is in process of installing its depots in all the great ports of the world. In French territory alone, reservoirs will be constructed in the ports of Dunkirk, Le Havre, Rouen, Saint-Nazaire, La Pallice, Bordeaux, Marseilles, Bizerta, Algiers, Oran, Casablanca, Dakar. Through the agency of its subsidiary, the d'Arcy Exploration, it is prospecting for oil in every part of the globe. Wherever geological conditions appear to indicate the presence of oil in commercial quantities, the operations of drilling are undertaken. The activities of the d'Arcy Exploration are carried on at present in Great Britain, Australia, New Zealand, Canada, Hungary; and again, quite recently, the company has concluded arrangements for investigating and prospecting in districts of France and her colonies which are likely to produce oil. A French company, the Société Générale des Huiles de Pétrole, has been founded, with an initial capital of 100 million francs, jointly subscribed by French and British groups, with the object of undertaking the refining and distribution of oil in France as well as her colonies. According to the agreement signed in London on October 27, 1920, by Sir Basil Zaharoff for the Banque de la Seine, nine subsidiary companies will be founded, each having a different function: importation, refining, distribution, and transport of oil.[24] And this "Franco-British Anglo-Persian" is even going to build an oil fleet, thanks to the Société Navale de l'Ouest.

Other enterprises are also under consideration. The Anglo-Persian Oil has acquired important interests in the British Oil Bunkering, and it has also founded the Tankers Insurance Company Limited, an insurance company with a capital of £100,000, for it intends, henceforward, to do its own insurance. By means of the Scottish American Oil, of which it has technical and commercial control, it has even succeeded in penetrating into Mexico, thus completing the work begun by Pearson and continued by the Shell.

Its activities, during the month of December 1920 alone, were remarkable. It obtained a footing in Spain, founding a company with a capital of 25 million pesetas, of which 55 per cent. was subscribed by the Anglo-Persian and 45 per cent. by a Spanish group having at its head the Banco Urquijo and the Spanish Credit Bank. It concluded a contract with the Hungarian Government guaranteeing it exclusive rights of exploitation on Magyar territory, in case oil should be discovered there, which has happened. Deposits have been found near Letenye and the quantities which it is hoped to obtain will no doubt be more than sufficient to supply the needs of Hungary.

The Hungarian Minister of Finance submitted to the National Assembly, in December 1920, a report concerning the cession of rights to prospect for oil to a syndicate controlled by the d'Arcy Exploration. The Government at Budapest, not having the necessary capital for exploration, was favourably disposed to the offers of the subsidiary of the Anglo-Persian. The negotiations were conducted by Dr. Telesky, a former Minister of Finance, and Dr. von Bockh, Secretary of State. According to the agreement reached, the d'Arcy Exploration undertook to devote at least £100,000 to prospecting for oil; if the results were satisfactory, the company would exploit one-third of the geological productive units, one-third would be kept in reserve, and the remaining third would revert, free of all expense, to the State. As regards the second portion, the Hungarian Government reserved complete freedom of action. A company was formed with a capital of £1,000,000 sterling, of which the Hungarian Government subscribed ten per cent.; the company had to deposit with the Government 25 per cent. of the shares, and to undertake to hand over to it each year one-tenth of the production, in kind or in money.

The Anglo-Persian has also obtained possession of the oil-bearing territory of Transylvania, ceded to Rumania. During the War, this was seized and exploited by the Austrian military authorities, for it belonged to the Hungarian National Petroleum Company. The capital of this company was heavily drawn upon for repairs undertaken at the close of hostilities. An appeal for funds became necessary. The Anglo-Persian demanded that the technical and commercial management of the undertaking should be entrusted to it and that two of its nominees should sit on the Board of Directors; it then subscribed £500,000 in preference shares. Each of these shares carried twenty votes against one for an ordinary share: thus the Anglo-Persian has complete control.

In addition to this, it has taken over the share which was reserved for Britain in the German interest in the Steaua Romana, and disposes of nearly 80 per cent. of the shares in the Turkish Petroleum, which has claims to oil concessions in Mesopotamia.

On October 13, 1921, the Anglo-Persian made an agreement with the Japanese company Tei-Koku, undertaking to supply it with 350,000 barrels of petroleum yearly. Half of this is destined for the Japanese Navy.

Organizations for the sale of its products are to be found in Belgium, Denmark and Norway.

Part of the famous deposits of Rivadavia, which the Argentine Government intended to reserve for itself, has fallen under its control.

In co-operation with the Australian Government—from which it had already obtained, in May 1920, exclusive rights in the former German colonies of Papua—the Anglo-Persian founded the Commonwealth Oil Refineries, with a capital of £500,000. It is prospecting actively in Western Australia, and has asked the Government of Perth for a concession of 100,000 acres.