Compensating AIOC (BP)
Joint Statement by Iran + United Kingdom (1954)

The Mossadegh Project | October 23, 2019                                                   


The following joint statement released in Tehran on Aug. 5, 1954, specifically on compensation to the AIOC (aka British Petroleum), coincided with announcement of the Iran Oil Consortium Agreement of 1954.

British Foreign Office | Iran Documents (1951-1954)
Iran Oil Consortium | Archive of Documents (1953-1954)




COMPENSATION

JOINT STATEMENT BY IRANIAN AND
UNITED KINGDOM DELEGATIONS



In the course of frank and friendly discussions on the subject of compensation there has been a meticulous examination of all claims and counterclaims of both sides. As part of a general settlement of oil problems the Persian Government have agreed to pay Anglo-Iranian Oil Company, Ltd. a net amount of compensation totaling £25 million payable over ten years and free of interest. Payment will not begin until January 1, 1957.

The settlement takes into account the value of internal distribution assets, the Kermanshah refinery and Naft-i-Shah oilfields, the disruption of the enterprise of the A.I.O.C. Ltd., and the disruption of Iran’s economy arising out of the failure of the parties to reach a settlement following upon nationalization of the oil industry in 1951.

This agreement, in conjunction with the agreement to be concluded with the consortium, will settle a long-standing dispute, and it is hoped, will inaugurate a new era in Anglo-Persian relations.

TEHRAN. August 5, 1954.


• Note: In U.S. media, “Persia/Persian” was substituted with “Iran/Iranian”.


Divvying Up the Loot: The Iran Oil Consortium Agreement of 1954
Divvying Up the Loot: The Iran Oil Consortium Agreement of 1954


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Related links:

Joint Statement by Howard Page and Ali Amini on Iran Oil Deal | August 5, 1954

Text of Aide-Mémoire, Joint Iran-UK Statements on Oil Deal | August 5, 1954

Winston Churchill and the Shah’s Messages re: Anglo-Persian Friendship | August 7, 1954



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