Western Oil Companies and the six Gulf producing states reached agreement in Teheran on Sunday (February 15) under which the oil nations receive big price increase in return for five-year price stability deal.
SV Int. Kuwait Ministers arrive at Finance Ministry
SV Iran Minister and party enters
LV Lord Strathalmond and party arrive
SV Arabian Minister & party arrive
SV Iran Minister signs
CU & SV Lord Strathalmond signing
SV Saudi Arabian Minister signs
LV PAN Ministers during signing
SV Lord Strathalmond shaking hands with Iran Minister, other Ministers rise and shake hands across table (3 shots)
Initials PS/1426 PS/1515
Script is copyright Reuters Limited. All rights reserved
Background: Western Oil Companies and the six Gulf producing states reached agreement in Teheran on Sunday (February 15) under which the oil nations receive big price increase in return for five-year price stability deal.
SYNOPSIS: Western oil companies and six Gulf producing states signed an agreement in Teheran on Sunday under which the oil nations receive substantial price increases in return for a five year price stability deal. The signing came just one day short of a deadline set by the six Gulf States for retaliation measures against the companies, including the possibility of an oil embargo. The agreement climaxed a month of protracted hard negotiations.
The Saudi Arabian Ministerial team -- here arrived for the signing--represented the Gulf states together with Ministers from Iraq and Iran.
The Iranian Finance Minister Jamshid Amouzegar was the first to sign the agreement which gives the Gulf states an estimated additional revenue of more than 500 million pounds sterling this year, rising to about 1,250 million in 1975.
The agreement is valid for the five years until 1975, establishing security of supply, and stability in financial arrangements during that period.
Britain's Lord Strathalmond, the chief negotiator for the 23 companies, mostly American, involved in the talks, signed for the Western companies.
The six Gulf nations with a total daily output of 15 million barrels of crude oil, supply half the fuel requirements of Europe and 90 per cent of Japan's needs. One immediate effect of the agreement will be an increase in prices to the motorists. The companies concerned have said the increases must be passed on to the consumer. In paying the increase to the Gulf States, the companies have gained a price stability vital for the industrialised and developing countries despite the inflationary effects of the agreement on production costs.