Agreement Reached with AIOC
Statement by Anglo-Iranian Oil Company (1954)

The Mossadegh Project | August 1, 2019                                                         



Statement by Anglo-Iranian Oil Company, Limited issued in London at 1.30 pm (12.30 pm G.M.T.) on Thursday 5th August, 1954.

____________

Agreement has been reached in Tehran with the Iranian Government on the settlement of the claims of the Anglo-Iranian Oil Company, Limited, for compensation from Iran. Commencing on 1st January, 1957, the Iranian Government will pay to the Company a sum of £25 million in ten equal annual installments.

There is also agreement in principle between the Iranian Government and the representatives of a Consortium of eight Oil Companies over arrangements which will restore the flow of Iranian oil to world markets. The Consortium will have the use of the installations in South Iran originally provided by the Company. The compensation agreement is an integral part of a general settlement of the Iranian oil problem under which the Anglo-Iranian Oil Company will have a 40% interest in the Consortium and will receive payments from the other members of the Consortium for the remaining 60% interest. In view of this, the Company has not claimed compensation from Iran for loss of future profits.

Formal agreements will be submitted as soon as possible to the Iranian Majlis for ratification and thereafter a full statement will be issued to the Company’s stockholders.

In accepting the offer of a net payment by the Iranian Government amounting to only £25 million, which is in full and final settlement of all claims and counter-claims of the parties, the Company has had regard to its continuing interest in the oil operations in South Iran, to the payments to be made to it by other Consortium members, and also to its sincere desire that a solution of the oil dispute should be reached.



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Related links:

Basis for the Settlement with Anglo-Iranian Oil Co. (March 12, 1954)

Sir William Fraser’s Statement To AIOC Stockholders (June 1954)

Paid In Sterling: Text of Joint British-Iranian Statement (Aug. 5, 1954)



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