a wealth of information from this link...............From MongaBay
''Abd al Aziz ibn Abd ar Rahman Al Saud, the first king of
Saudi Arabia, had not gained control of the western part of the
country when he granted the first oil concession in 1923. A
British investment group, the Eastern and General Syndicate, was
the recipient. The syndicate gambled on the possibility that it
could sell the concession, but British petroleum companies showed
no interest. The concession lapsed and was declared void in 1928.
Discovery of oil in several places around the Persian Gulf
suggested that the peninsula contained petroleum deposits.
Several major oil companies, however, were blocked from obtaining
concessions there by what was known as the Red Line Agreement,
which prohibited companies with part ownership of a company
operating in Iraq from acting independently in a proscribed area
that covered much of the Middle East. Standard Oil Company of
California (Socal), which was not affected by the Red Line
Agreement, gained a concession and found oil in Bahrain in 1932.
Socal then sought a concession in Saudi Arabia that became
effective in July 1933.''
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