The need for additional capital to exploit Saudi Arabia`s oil fields led to the end of the red line. Once again, a world war was an opportunity to reorganize oil concessions in the Middle East. After the Germans occupied France in 1940, the IPC possessions of Gülbenkian and the French were confiscated in accordance with British law. The IPC Board in London has been informed that the IPC agreement may have been invalidated by becoming a treaty with hostile power. The principles of the CPI decided not to follow this possibility during the war, but subsequently, Standard of New Jersey`s legal counsel raised the issue in front of U.S. officials who joined the company in calling for a review of the IPC agreement to eliminate the self-denial clause. The success of these maneuvers in 1947 ended the Red Line and allowed Standard of New Jersey and New York to take shares in ARAMCO while retaining their shares in IPC. The red line, as well as the foreign ownership agreement, marked the structure of foreign ownership and the pace of Middle East oil development. For example, Gulf Oil (now owned by Chevron), an initial part of the IPC agreement (it later withdrew), became an active candidate for a share of the Kuwaiti concession, in part because its stake in IPC prevented it from seeking promising concessions elsewhere in the Gulf. Gulf`s success in winning a share thwarted expectations that Anglo-Persian (APOC) would be able to monopolize Kuwait, then a British protectorate. The Red Line prevented APOC and IPC`s U.S. partners, mainly Standard Oil of New Jersey (now Exxon) and Standard Oil of New York (now Mobile), from seeking concessions in Saudi Arabia.
The rich fields in the eastern part of Saudi Arabia were discovered by Casoc, a subsidiary of Standard Oil of California (now Chevron). Texaco bought half of Casoc in 1936. It wasn`t a Red Line company either. The final agreement establishing the IPC was signed in July 1928 in Ostend, Belgium. It contained the self-denial clause. However, the principles declared themselves uncertain as to the real limits of the Ottoman Empire. Legend has it that Gülbenkian, then and there, took a red pencil and drew a line around what he meant by «Ottoman Empire» — the Red Line. With the exception of Kuwait and Iran, the Red Line included most of what was to become the region`s major oil-producing areas. Licensor has the right, from time to time, to induce Alzheon to transfer to Licensor any third party payments required by the Parteq Agreement or TPC Agreement, which Licensor then makes to the Licensee in its own name, in accordance with the terms of such agreements, or (ii) alzheon to order all third party payments; necessary under the Parteq Agreement or the TPC. Agreement directly with the beneficiary in accordance with the provisions of these agreements. see also the current agreement; gülbenkian, calouste; Royal Dutch shell. *Acceptance of the contractual agreement is left to the discretion of UC Berkeley This last share should finally be transferred to the French as part of the San Remo oil agreement.
There have previously been abortive attempts at an agreement, provisional and definitive version of the long-berengar agreement,:148 &172, then the Greenwood Berengar agreement before the final version of San Remo. All versions are available at the following address. :172-8 At the San Remo Conference of 1919, the German share of TPC was transferred to France. The Americans, also war winners, claimed a share of their spoils and accepted 20 percent in 1922 (later increased to 23.7 percent). But that didn`t put an end to the disputes that hindered the company`s reorganization. Gülbenkian insisted that the «self-denial clause» be maintained in any new agreement. . .