Anglo-Persian Oil Company

Quick Facts: Who was Anglo-Persian Oil Company?

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Anglo-Persian Oil Company

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British oil company pivotal to modern energy, evolving through nationalization and geopolitical shifts.

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2Day Chrono-Wiki & Primary Historical Archives

Origins & Early Life

The Anglo-Persian Oil Company (APOC; Persian: شرکت نفت ایران و انگلیس) was a British company founded in 1909 following the discovery of a large oil field in Masjed Soleiman, Persia (Iran). The British government purchased 51% of the company in 1914, gaining a controlling number of shares, effectively nationalizing the company. It was the first company to extract petroleum from Iran. In 1935 APOC was renamed the Anglo-Iranian Oil Company (AIOC) when Reza Shah formally asked foreign countries to refer to Persia by its endonym Iran. In 1954, it was renamed again, becoming The British Petroleum Company, one of the antecedents of the modern BP public limited company.

Career & Major Achievements

The government of Mohammad Mosaddegh nationalized the company's local infrastructure assets and gave the new company the name National Iranian Oil Company. In 1901, William Knox D'Arcy, a millionaire London socialite, negotiated an oil concession with Mozaffar al-Din Shah Qajar of Persia. He financed this with capital he had made from his shares in the highly profitable Mount Morgan Mine in Queensland, Australia. D'Arcy assumed exclusive rights to prospect for oil for 60 years in a vast tract of territory including most of Persia. In exchange the Shah received £20,000 (£2.1 million today), an equal amount in shares of D'Arcy's company, and a promise of 16% of future profits.

Enduring Legacy & Impact

D'Arcy hired geologist George Bernard Reynolds to do the prospecting in the Persian desert. Conditions were extremely harsh: "small pox raged, bandits and warlords ruled, water was all but unavailable, and temperatures often soared past 50°C". After several years of prospecting, D'Arcy's fortune dwindled away and he was forced to sell most of his rights to a Glasgow-based syndicate, the Burmah Oil Company. By 1908, having sunk more than £500,000 into their Persian venture and found no oil, D'Arcy and Burmah decided to abandon exploration in Persia. In early May 1908, they sent Reynolds a telegram telling him that they had run out of money and ordering him to "cease work, dismiss the staff, dismantle anything worth the cost of transporting to the coast for re-shipment, and come home." Reynolds delayed following these orders and in a stroke of luck, struck oil shortly after, on 26 May 1908.

Chronological Milestones & Life Events

1. 1901: 1901 Milestone — In 1901, William Knox D'Arcy, a millionaire London socialite, negotiated an oil concession with Mozaffar al-Din Shah Qajar of Persia.
2. 1908: 1908 Milestone — By 1908, having sunk more than £500,000 into their Persian venture and found no oil, D'Arcy and Burmah decided to abandon exploration in Persia.
3. 1909: 1909 Milestone — The Anglo-Persian Oil Company (APOC; Persian: شرکت نفت ایران و انگلیس) was a British company founded in 1909 following the discovery of a large oil field in Masjed Soleiman, Persia (Iran).
4. 1914: 1914 Milestone — The British government purchased 51% of the company in 1914, gaining a controlling number of shares, effectively nationalizing the company.
5. 1935: 1935 Milestone — In 1935 APOC was renamed the Anglo-Iranian Oil Company (AIOC) when Reza Shah formally asked foreign countries to refer to Persia by its endonym Iran.
6. 1954: 1954 Milestone — In 1954, it was renamed again, becoming The British Petroleum Company, one of the antecedents of the modern BP public limited company.

Notable Quotes by Anglo-Persian Oil Company

“The service rendered by G.B. Reynolds to the British empire and to British industry and to Persia was never recognized.”

Historical Fact-Check Quiz: Anglo-Persian Oil Company

True or False: “The Anglo-Persian Oil Company was founded directly after the initial discovery of oil in Masjed Soleiman, Persia.”

Answer (FALSE ❌): While the company was founded following the discovery, the concession itself was negotiated much earlier by William Knox D'Arcy.

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• Adolf Erik Nordenskiöld — Historical peer (Died in 1901) (1901): Finland-Swedish baron, renowned geologist, and pioneering Arctic explorer.
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Frequently Asked Questions about Anglo-Persian Oil Company