S. H. Longrigg, Oil in the Middle East: Its Discovery and Development, London, 1954. The concession was to be reduced from 480,000 square miles to 100,000 square miles by 1938, resulting in the abandonment of approximately 80 per cent of the area covered by the 1901 concession. However, the term of the concession was extended by 32 years until the end of 1993, i.e. it was to last sixty years. On the financial side, the agreement provided that APOC paid a lump sum payment of one million pounds to the Iranian government in order to settle all previous claims. Instead of 16% of APOC`s profits, royalties had to be calculated using a simpler method, which was not based on profits, but on the physical volume of oil and the financial distribution it provided to its shareholders. In concrete terms, from 1 January 1933, the royalty was to be 4 shillings (gold) per tonne of oil sold or exported, plus 20 per cent of the dividend distribution to ordinary shareholders or to the company`s reserves of more than 671,250 pounds sterling (2,886,375). In addition, instead of local taxes which, in the first fifteen years of the concession, amounted to nine pence per tonne for the first six million tonnes and six pence per tonne above that volume, minor payments should be provided for which should be increased by three pence for the next fifteen years and rates to be negotiated for the remaining period. The company has committed to supplying petroleum products for the domestic market with a 25 per cent discount to the government and 10 per cent to the public, thanks in part to the development of the Naft-e-h oil field and the Kermenh refinery.

With regard to representation, the Iranian government should have the right to appoint a “delegate” entitled to obtain from the company any information to which shareholders would be entitled; and to participate in meetings of the Board of Directors, its committees and shareholder meetings, which have been convened to discuss issues arising from the relationship between APOC and the Iranian government. With regard to employment, the company had to recruit its craftsmen, technicians and salespeople from Iranian nationals as long as it was able to find Iranians with the required skills and experience. In addition, the company and the Iranian government should develop a “general plan” for the gradual reduction of foreign workers and their replacement by the Iranians as soon as possible. The company`s exclusive right to build and operate pipelines within the concession area has been removed. With the implementation of the 1933 agreement, royalties for 1931 and 1932 were recalculated on new bases, with the result that 1,339,132 pounds sterling (5,758,267) were finally paid for 1931, instead of the amount of 306,872 pounds sterling (1,319,549) pounds that had caused so much vexation.