Red Line Agreement 1928

The Red Line Agreement of 1928 – A Historic Milestone in Middle Eastern Oil Development

The Red Line Agreement of 1928 is a historic agreement that paved the way for the development of Middle Eastern oil resources. It was signed by five major oil companies – the Anglo-Persian Oil Company (later renamed BP), Royal Dutch Shell, Compagnie Française des Pétroles (later Total), Near East Development Corporation, and Standard Oil of New Jersey (later ExxonMobil).

The agreement was named after the « Red Line » which marked the boundary between the territories under the control of the French and British colonial powers in the Middle East. The agreement divided the region into five zones, and each company was granted exclusive rights to explore and produce oil within its zone.

The Red Line Agreement was significant for several reasons. Firstly, it marked the beginning of a new era of cooperation between the major oil companies, which had previously competed fiercely against each other. Secondly, it helped to establish a legal framework for oil exploration and production in the Middle East, which had previously been chaotic and disorganized.

Thirdly, it paved the way for the formation of the Iraq Petroleum Company (IPC), which was created in 1929 with the participation of four of the Red Line signatories – Anglo-Persian Oil, Royal Dutch Shell, Compagnie Française des Pétroles, and Standard Oil of New Jersey. IPC became one of the largest oil companies in the world and played a key role in the development of Iraq`s oil industry.

However, the Red Line Agreement was also controversial. It was criticized by some for giving foreign companies exclusive rights to exploit the Middle East`s oil resources, which many argued belonged to the people of the region. It was also seen as an example of Western imperialism and the unequal distribution of wealth and power between Western countries and the Middle East.

Despite these criticisms, the Red Line Agreement played a crucial role in the development of the Middle East`s oil industry. It established a legal framework for oil exploration and production, and helped to bring much-needed investment and technology to the region. Although the agreement is now over 90 years old, its legacy can still be felt in the Middle East today.

Ce contenu a été publié dans Non classé par admin. Mettez-le en favori avec son permalien.