yokAcikBilim 10226219

ENES YAVUZ
OTTOMAN OIL CONCESSIONS DURING

THE HAMIDIAN ERA (1876–1909)
A Master’s Thesis
by
Enes Yavuz
Department of History
Bilkent University 2018
İhsan Doğramacı Bilkent University

Ankara
December 2018
To My late father, Yaşar Yavuz and my mother, Derya Yavuz
The Graduate School of Economics and Social Sciences

of
by
Enes Yavuz
In Partial Fulfillment of the Requirements

For the Degree of
MASTER OF ARTS in HISTORY
Department of History
Ankara
December 2018
iii
ABSTRACT
Yavuz, Enes
M.A., Department of History
Supervisor: Asst. Prof. Mehmet Akif Kireçci
November 2018
This thesis evaluates the Ottoman oil concessions in the Hamidian Era (1876–
1909), by focusing on Abdulhamid II’s famous ―balanced policy‖ in the
international affairs of the Empire. The study argues that there was an Ottoman oil
policy which considered the Ottoman oil concessions within the scope of
Abdulhamid II’s reasonable international politics versus the European
interventions seen as the greatest danger by the Sultan. In that regard, Abdulhamid
II did not directly contradict the foreign oil concession demands or accept these
demands. Instead, He tried to pursue a balanced policy regarding the oil
concessions between the Great powers. In the begining of the Hamidian Era, the
Ottoman Empire had been already dominated by financial control and restrictions
of European powers especially France and Britain, which trying to locate Ottoman
oil resources. Instead of working with France and Britain in oil related businesses,
Abdulhamid II welcomed German involvement and their enterprises in order to
take advantage of their expertise. Ottomans and Germans collaborated in projects,
such as the Baghdad Railway convention, which enabled Germany to obtain oil
concessions from the Ottoman Empire. As a result, Abdulhamid II attempted to
use the Ottoman oil resources and concessions by manipulating the foreign
intervention as an instrument of his foreign policy.
Keywords: Hamidian Era, Ottoman Oil, Ottoman Oil Concession, Ottoman Oil
Policy
iv
ÖZET
II. ABDÜLHAMİD DÖNEMİ (1876–1909) OSMANLI

PETROL İMTİYAZLARI
Yavuz, Enes
Yüksel Lisans, Tarih Bölümü
Tez Yöneticisi: Dr. Öğr. Üyesi Mehmet Akif Kireçci
Kasım 2018
Bu tez, II. Abdülhamid Dönemi (1876–1909) Osmanlı petrol imtiyazlarını ve bu

imtiyazların Sultan Abdülhamid’in ünlü ―denge politikası‖ çerçevesinde analiz
etmiştir. Bu çalışmada, II. Abdülhamid’in en büyük tehlike olarak gördüğü
Avrupalıların müdahalelerine karşı, II. Abdülhamid'in dengeli ve makul
uluslararası politikaları kapsamında Osmanlı petrol imtiyazlarını ele alan bir
Osmanlı petrol politikası tartışılmaktadır. Bu kapsamda Sultan’ın yabancıların
petrol imtiyaz talepleriyle doğrudan çeliştiği ya da bu talepleri doğrudan kabul
ettiği söylenemez. Bunun yerine, Sultan Abdülhamid büyük güçlere karşı
Osmanlı petrol imtiyazları üstünden bir denge politikası izlemeye çalıştı. O
yıllarda, Osmanlı İmparatorluğu Avrupalı güçlerin özellikle Osmanlı petrol
kaynaklarıyla ilgilenen Fransa ve İngiltere’nin finansal kontrolleri ve
kısıtlamalarının tahakkümü altındaydı. Petrolle ilgili işlerde Fransa ve İngiltere ile
çalışmak yerine, Sultan Abdülhamid Alman teşebbüslerinin kapasitelerinden ve
uzmanlıklarından yararlanmak için Almanya ile çalıştı. Osmanlılar ve Almanlar,
Almanların Osmanlı İmparatorluğu'ndan petrol imtiyazları elde etmelerini
sağlayan Bağdat Demiryolu projesi gibi çalışmalarda işbirliği yaptılar. Sonuç
olarak, II. Abdülhamid yapılan dış müdahaleleri manipüle etmek için Osmanlı'nın
petrol kaynaklarını ve petrol imtiyazlarını kendi dış politikasının bir enstrümanı
olarak kullanmaya çalıştı.
Anahtar Kelimeler: II. Abdülhamid Dönemi, Osmanlı Petrolü, Osmanlı Petrol

İmtiyazları, Osmanlı Petrol Politikası
v
ACKNOWLEDGEMENTS
Firstly, I wish to express my deepest gratitude to my supervisor Asst. Prof. Dr.

Mehmet Akif Kireçci for all of his guidance and fertile critiques. I am also very
thankful to the members of the thesis committee, Prof. Dr. Özer Ergenç who also
helped me in the process and Asst. Prof. Dr. Selda Güner for their precious
critiques. I am also thankful to my dear friend Widy Novantyo Susanto who
provided his unconditional support during the editing process of my thesis.
I owe many thanks to dear friends, Fatih Furkan Akosman, Oğuz Kaan Çetindağ,
Fulya Özturan, Ahmet Erğurum, Aylin Kahraman, Birce Beşgül and Göksel Baş
for their important advices during the process of my thesis. I also thank my friend,
Mehmet Babatutmaz who supported and encouraged me during my studies.
My special gratitude goes to my precious fiancee, Mehlika Ayşe Fişne, for being
there for me whenever I need. Lastly, I would like to express my thanks to my
dear brother, Ersin Yavuz, for his all support.
vi
TABLE OF CONTENTS
ABSTRACT……….............................................................................................. iv
ÖZET………......................................................................................................... v
ACKNOWLEDGMENTS..................................................................................... vi
TABLE OF CONTENTS...................................................................................... vii
LIST OF TABLES..…………………………………………………………....... ix
LIST OF MAPS………………………………………………………………...... x
CHAPTER I: INTRODUCTION………………………………………………… 1
1.1 Subject……………………………………………………………......... 1
1.2 Sources………………..………………………………………….......... 6
1.3 Literature Review ……………………………………………………. 11
1.4 Thesis Structure …………………………………………………….... 15
CHAPTER II: HISTORICAL BACKGROUND……………………………...... 17

2.1 Oil: Before Industrial Revolution.…………………………………..... 18
2.2 Oil: Early 1800s.…………………………………………………….... 24
2.3 Emergence of Petroleum as a Valuable Asset.……………………….. 25
2.4 The Concept of Concession.………...…………………..……………. 31
2.5 Concessions in the Ottoman Context…………..…………………….. 33
2.6 The Changing Nature of Concessions……...……………………….... 36
CHAPTER III: HISTORY Of OIL IN THE OTTOMAN LANDS……...……... 41

3.1 Oil in the Ottoman Empire (Before the Hamidian Era)………………. 42
3.1.1 Mine affairs in the Ottoman Empire………………............... 51
3.2 Oil in the Hamidian Era….………………………………………….... 52
3.3 First Efforts to Discover and Operate Oil…………………………….. 62
CHAPTER IV: OIL CONCESSIONS IN THE HAMIDIAN ERA………….… 67

4.1 The Ottoman Statesmen and Early Interests for Oil Concessions……. 68
4.2 Mine Regulations and the ProcedureS for Obtaining Oil Concessions. 78
4.3 International Interests and Rivalries for Ottoman Oil Resource……... 87
4.4 German Oil Concessions and Anatolian Railway Company…………. 95
vii
4.5 The 1904 German – Ottoman Agreement…………………………... 101
4.6 Abdulhamid II’s ―Balanced Policy‖ and Oil…………….………….. 105
4.6.1 Abdulhamid II’s Oil Policy…………………………………. 114
CHAPTER VI: CONCLUSION ……………………………………………… 118

REFERENCES………………………………………………………………… 122
APPENDIX….………………………………………………………………… 130
viii
LIST OF TABLES
TABLE 1. World Oil Production between 1857 and 1940.……......................... 27

TABLE 2. Lands Transferred to the Hazine-i Hassa in the HamidiaEra............. 57
TABLE 3. Important Oil Concessionaires in the Hamidian Era.......................... 76
TABLE 4. Oil Production and Its Value between 1901 and 1908..................... 109
ix
LIST OF MAPS
Map 1. A Map of Oil Concession Regions in the Ottoman Empire between 1877
–1922 and Regions Evliya Çelebi visited between 1647 and 1666........... 130
Map 2. A Map Showing Some Oil Reserves in Mosul by Mine Engineer Arif Bey
of Hazine-i Hassa...................................................................................... 131
Map 3. A Map of Oil Reserves in Mosul and Baghdad by Mine Engineer
Graskopf of Hazine-i Hassa...................................................................... 132
Map 4. A Map Showing the Railways and Oil Fields Being Constructed and
Built inthe Asian Region of the OttOman Empire..................................... 133
x
CHAPTER I
INTRODUCTION
1. 1 Subject
Oil is the most significant energy resource of the twentieth century, playing a
considerable role as a strategic factor in world affairs.1 Masses have always
needed or benefited from energy resources to enable them to produce in more
productive ways. Throughout the ages, oil as a black inflammable matter was
utilized in various areas. Since the late nineteenth century, oil gained its strategic
importance with developing technology and the industrialization of production.
One of the richest oil lands were within the Ottoman Empire during that period.
After the end of World War I, the countries that emerged from the collapse of the
Ottoman Empire became oil rich states.
Throughout the history, Ottomans were well aware that there was oil as a black
inflammable matter in their lands. In fact, they used oil in very different areas
ranging from lighting to medicine for centuries. In the second half of the
nineteenth century, foreign travelers, missionaries, and military specialists
traveled around the Ottoman lands to examine oil rich of the Ottoman Empire.
Accordingly, Abdulhamid II appointed some experts to examine in the lands the
1
Behice Tezçakar. ―Erzurum- Pülk Oil Concessions: Discovery of Oil in the Minds and the Lands
of the Ottoman Empire‖. MA Thesis, Istanbul/Boğaziçi University (2008), 1–2.
foreigners interested in. As a result of these examinations, Ottomans understood
that their lands had great oil reserves, and foreigners were in pursuit of these
reserves.
The international rivalry to control the large oil resources of the Ottomans began
in the last quarter of the 19th century.2 France and Britain had already been
competing with each other to gain political, economic, financial, commercial
advantage for obtaining concessions from the Ottoman Empire at the time.
Moreover, the Ottoman Empire was in a difficult situation due to financial control
and restrictions especially from Britain and France via the Public Debt
Administration. This caused the powers to have a strong position in the Empire.3
On the other hand, Germany as new dynamic power of Europe, approaching the
Ottoman Empire with eager to establish good relations, emerged as a powerful
rival to the other Great powers to obtain concessions from the Empire.
Abdulhamid II auhorized German interest and support in the local and
international affairs of the Empire,4 collaborating on international projects such as
the Baghdad Railway enabled Germany to obtain oil concessions and reach oil
resources of the Empire to establish a modern financial infrastructure within the
Empire. In that regard, the Sultan as a ―sensible sovereign‖5 was eager to
2
The Ottoman Empire at the time had an extraordinary geopolitical position in terms of trade,
underground resources and it was still an Empire owned lands in three continents. See, François
Georgeon. Sultan Abdülhamid. Translated by Ali Berktay. İletişim Yayınları, 2018. 13–14.
3
See Donald C Blaisdell.Translated by Atıf Kuyucak. Osmanlı İmparatorluğunda Avrupa malî
kontrolü. İstanbul : T.C. Maarif Vekilliği, 1940.
4
Edward Mead Earle, Turkey, the Great Powers, and the Bagdad Railway: a study in imperialism,
The Macmillan Company, New York; 1923, chapters 2-3. See Marian Kent, The Great Powers
and the End of the Ottoman Empire. London; Portland, Or. : Frank Cass, 1995, 11 and 112.
5
Engin Deniz Akarlı. Abdülhamid II and the East-West Dichotomy. Bilkent University, 2018.
Bilkent University Institutional Repository, 8.
2
manipulate the foreign intervention for Ottoman oil as a part of his ―balanced
policy‖6, taking advantages of the rivalries among the major powers of Europe by
following moderate, reasonable and tolerant policies in the international relations.7
This thesis is about the Ottoman oil concessions in the Hamidian Era (1876-
1909)8 and the Ottoman oil policy of the period. Ottoman statesmen who were
closely related to the Ottoman state and European great powers (Düvel-i
Muazzama) through their entrepreneurs asked the Ottoman authorities to obtain
rights to operate oil deposits which existed in large quantities in Mesopotamia9
and smaller quantities in Anatolia. However, oil as a new resource of energy
became a strategic mineral for the international power struggle in the imperial
territories of Abdulhamid II to supply the energy need for the rapid
industrialization of the Western world. Therefore, the Sultan tried to develop an
oil policy not to lose his oil reserves through vain concesion rights to the foreign
powers so he adopted his famous ―balanced policy‖ regarding oil resources of the
Empire as bargaining chips in international arena, while modernizing his Empire
along with keeping the solidarity of oil reserves of the Empire during his reign.
6
Vahdettin Engin. Pazarlık: İkinci Abdülhamid Ile Siyonist Lider Dr. Theodore Herzl Arasında
Geçen "Filistin'de Yahudi Vatanı" Görüşmelerinin Gizli Kalmış Belgeler. İstanbul: Yeditepe
Yayınevi, 2010, 4–5. And Ortaylı says ―Maharetli bir dengeci‖ meaing dexterous balancer in
politics, İlber Ortaylı. Osmanlıya Bakmak: Osmanlı Çağdaşlaşması. n.p.: İstanbul : İnkilap
Kitapevi Yayın Sanayi ve Ticaret Aş, 2016, 132.
7
Engin Deniz Akarlı, Abdülhamid II, 8 and 15. And see, François Georgeon. Sultan Abdülhamid,
475.
8
Ortyalı described the period ―Devr-i Hamidiyye‖ as Hamidian Era. İlber Ortaylı, Osmanlıya
Bakmak, 129.
9
―Mesopotamia‖ or ―Mesopotamian‖ terms were used refer the territory consisted of Mosul,
Kirkuk, Baghdad and Basra regions of the Ottoman Empire in this research as international
sources used.
3
Firs of all, I limit my research about the Ottoman oil concessions to the period of
the reign of Abdulhamid II. This study also discusses the meaning of concession,
the changing nature of Ottoman concessions with the increasing foreign
intervention in the nineteenth century and I specifically indicate how Abdulhamid
II used Ottoman oil to turn this changed nature in favor of Ottomans through oil
concession. Most of the existing literatures about the Ottoman oil concessions do
not focus on this aspect of the issue, showing the re-changing nature of the
Ottoman concessions especially during the sultanate of Abdulhamid II is
significant in order to demonstrate the structure of Ottoman oil concessions.
Accordingly, some academicians argue that Ottoman concessions turned to a
considerable source of both external and local interference by the Great Powers of
Europe within Ottoman Empire at the time.10
Therefore, this thesis evaluates the Ottoman oil concessions as a part of Ottoman
international relations. The oil concessions are crucial to discuss the relation
between the concessions and the foreign intervention in the nineteenth century,
showing how the Ottoman Sultan dealt with the interventions of European great
powers to mitigate European demands by using concessions as a bargaining tool.11
In line with this, Abdulhamid II attempted not to lose the control of oil reserves all
over the Empire as a part of his developing oil policy. The granted oil concessions
were mainly utilized within the balanced foreign policy of Abdulhamid II.12 The
10
Marian Kent, The Great Powers, 3.
11
See M. Şükrü Hanioğlu. A Brief History of the Late Ottoman Empire. (Princeton, N.J.: Princeton
University Press, 2008. pp. Xii and 241.
4
oil concessions were implicitly used by the Sultanate to reduce the effects
influence of the burden that came with foreign debt. In addition, there were
considerable achievements to modernize the Empire such as railroad and
telegraph lines all over the Empire during this international bargaining process for
Ottoman oil reserves.13
On the other hand, the Ottoman oil policy is analysed by considering the purpose
of granting oil concessions, the fortune oil seekers, the discovery of oil in the
lands of the Empire, local and international concessionaries, the process of the
realization of the importance of oil resources in the minds of Ottoman authorities.
Nevertheless, I discuss mineral regulations and the procedure for obtaining oil
concessions in the Empire to demonstrate the process and how mineral regulations
were changed to meet the changing needs for the Sultan’s oil policy. In this
research, I rely on the Ottoman archival sources, especially the ones about
regarding the Ottoman oil concessions and policy.
I also write about the Ottoman oil concessions through railway concessions given
to Germany in my study. It is efficient to evaluate Ottoman oil policy by
considering the Ottoman railway concessions to show other important apparatus
or scopes of Ottoman oil policy. Such a study may provide insight into the
consequences of Abdulhamid II’s oil policy regarding oil resources and
concessions of the Empire as bargaining chips within his famous ―balanced
policy‖.
12
Engin Deniz Akarlı, Abdülhamid II, 12–13.
13
5
I. 2 Sources
Within the scope of this study, I used published or unpublished primary sources
and documents from the Ottoman Imperial Archives. The material used in this
study was obtained from the following collections of the Presidency Ottoman
Archives, Cumhurbaşkanlığı Osmanlı Arşivleri (COA):
Bab-ı Ali Evrak Odası (BEO),
Cevdet Askeriye (C.AS),
Cevdet Belediye (C.BLD),
Cevdet Bahriye (C.BH),
Dahiliye Nezareti Muhaberat-ı Umumiye İdaresi (DH. MUİ.),
Dâhiliye Nezareti Tesri-i Muamelat ve Islahat Komisyonu (DH. TMIK),
Dahiliye Nezareti Mektubi Kalemi (DH.MKT),
Dahiliye Şifre Kalemi (DH. ŞFR),
Diyarbakır Ahkam Defteri (DAD)
İrade Meclis-i Mahsus (İ. MMS.),
İrade Hususi (İ. HUS.),
İrade Orman ve Maadin (İ. OM.),
Hariciye Nezareti Tahrirat (HR.TH),
Hazine-i Hassa Tahrirat Kalem (HH. THR.),
Sadaret Divan Mukavelenameleri (A.}DVN. MKL),
Sadaret Nezaret Devair Evrakı (A.}MKT. NZD),
Şura-yı Devlet (ŞD.),
Yıldız Esas Evrakı Defterleri (YEE),
6
Yıldız Sadaret Hususî Maruzat Evrakı (Y. A.HUS.),
Yıldız Sadaret Resmi Maruzat Evrakı (Y.A.RES),
Yıldız Mütenevvi Maruzat, (Y. MTV),
Yıldız Perakende Evrakı (Y. PRK),
Yıldız Perakende Evrakı Umumi (Y.PRK. UM),
Yıldız Perakende Orman Maadin Ziraat Nazareti Maruzatı (Y. PRK. OMZ),
Yıldız Perakende Tahrirat-ı Ecnebiye Ve Mabeyn Mütercimliği (Y. PRK.TKM),
Yıldız Perakende Evrakı Arzuhal ve Jurnaller (Y.PRK.AZJ).
Besides these, I used the documents related to mine regulations, which were
related in the mine concessions, related taxes, concession procedures and
concessionaries. These mining regulations were carried out in 186114, 186915,
188716 and 190617. II. and V. Volumes of Düstûr I. Tertip, for 1869 and 1887
mine regulations were reached from the web collection of Grand National
Assembly of Turkey.18
While telling the related chapter with the history of oil in the Ottoman lands, I
especially benefited from the Seyahatname of Evliya Celebi.19 Also, some reports
14
Cited in Özkan Keskin, ―Osmanlı Devleti’nde Maden Hukukunun Tekâmülü (1861–1906)‖
OTAM, 29 (2011): 125–147, 127–130. COA. DUİT. Nr.21/2–1.
15
Düstur I. Tertip II. Volume, P. 317–337. For further information, look at; Volkan Ş. Ediger.
Osmanlı’da Neft ve Petrol: Enerji Ekonomi-Politiği Perspektifinden. Ankara: ODTÜ Geliştirme
Vakfı Yayıncılık, 2005, 88–93.
16
Cited in Özkan Keskin, ―Osmanlı Devleti’nde Maden, Düstûr I. Tertip, V. Volume, 886 – 904.
17
Cited in Özkan Keskin, ―Osmanlı Devleti’nde Maden, 135–136. COA. Y. A. HUS. Nr. 501–
115.
18
―Düstur [Tertib 1].‖ TBMM Kütüphanesi Açık Erişim Koleksiyonu.
https://acikerisim.tbmm.gov.tr/xmlui/handle/11543/67.
7
on oil resources of today’s Iraq regions from some travel books of Europeans
were mentioned in the study.20 Other reports of foreign experts, missionaries and
geologist regarding to examine the oil reserves of the Ottomans were benefited in
the related sections of the thesis.21
I should also mention Edward Mead Earle’s book22, as my source for the
information to tell the relation between Ottoman railway concessions and oil
concessions, regarding German intervention to the Empire. The book relied on
lots of primary sources of the time was published in 1923 so it can be considered
as a primary source for my study. In addition to Earle, A. Fahimi Aydın’s and A.
Zeki İzgöer’s ―Osmanlı’da Petrol: Arşiv Belgeleri Işığında Bir Derleme‖23
(Petroleum in Ottomans: A Compiliation In the Light of Archive Documents) is
an important compiliation of book of primary sources covering many archival
documents and their transcriptions related to the history of Ottoman petroleum.
The secondary sources I used in this study about the subject can be classified
topically. First, I used a large amount of sources while writing on the historical
19
Evliya Çelebi. Seyahatname. 6. Cilt, Zuhuri Danışman (translation), İstanbul: Zuhuri Danışman
Yayınevi, 1969. See Hikmet Uluğbay. İmparatorluktan Cumhuriyete Petropolitik, Ankara: Ayraç
Yayınevi, 2003, 5.
20
Hikmet Uluğbay, İmparatorluktan, 28–30. Suat Parlar. 2003. Barbarlığın kaynağı petrol. n.p.
İstanbul : Anka, 2003., 2003. 13 and 85.
20
Hikmet Uluğbay, İmparatorluktan, 28–30. Suat Parlar. 2003. Barbarlığın kaynağı petrol, 13
and 85.
21
Edwin, Black. Banking on Baghdad: Inside Iraq's 7,000-year History of War, Profit, and
Conflict. Published by John Wiley & Sons, Inc., Hoboken, New Jersey (2004), p. 117.
22
Edward Mead Earle, Turkey, the Great Powers, and the Bagdad Railway: a study in
imperialism, The Macmillan Company, New York; 1923.
23
Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer. Osmanlı’da Petrol: Arşiv Belgeleri Işığında
Bir Derleme. Ankara: TPIC, 2014.
8
background of oil.24 The secondary sources related to the subject are the literature
on Ottoman concessions. In that group, I mainly benefited from Halil İnalcık’s
article25, which is named as İmtiyazat and Maurits H. Van Den Boogert’s The
Capitulations and the Ottoman Legal System.26 I should also mention Özkan
Keskin’s Osmanlı Devleti’nde Maden Hukukunun Tekâmülü (1861–1906)27 as my
source for the information about Ottoman mine regulations in order to write legal
infrastructure of oil concessions.
While discussing the chapter about the history of Ottoman oil concession, I used
lots of secondary sources28. Especially related chapters of the master thesises of
Behice Tezçakar29 and Ferah Çark’thesis30 were used in the related chapter of my
study.
24
Daniel Yergin, 2008. The Prize: the Epic Quest for Oil, Money & Power. New York: Free
Press,2008. ; Cevat E Taşman. Petrolün Tarihi, www.mta.gov.tr (20 February 2018); Kemal
Lokman’s and Cevat E. Taşman’s studies contributed to the literature essentially. Some of the
related articles in MTA magazine on the subject are as follows: Cevat E. Taşman, ―Petrolün
Türkiye’de Tarihçesi‖, Maden Tetkik ve Arama Enstitüsü Dergisi, (Octaber 1949), number 39; etc.
25
Halil İnalcık. ―İmtiyazat‖ Türkiye Diyanet Vakfı İslam Ansiklopedisi. İstanbul, 2000. Web.
26
Maurits H. Van Den Boogert. The Capitulations And The Ottoman Legal System, Edited by
Ruud Peters and Bernard Weiss. Studies In Islamic Law And Society, Brill Leiden Boston, 2005.
Volume 21.
27
Özkan Keskin. ―Osmanlı Devleti’nde Maden, 125–147.
28
İdris Bostan. ―Osmanlı Topraklarında Petrolün Bulunuşu ve İskenderunda İlk Petrol İşletme
Çalışmaları‖ Coğrafya Araştırmaları, (1990); Volkan Ş. Ediger. Osmanlı’da Neft ve Petrol..,;
Arzu Terzi. Bağdat-Musul'da Paylaşılamayan Miras: Petrol ve Arazi, 1876-1909. İstanbul: Truva,
2007., 2007. Bilkent University Library Catalog (BULC); Tülay Duran. ―Osmanlı
İmparatorluğunda İmtiyazlar: Zımpara- Kükürt-Petrol (Neft) ve Molibden madenleri İmtiyazları.‖
Belgelerle Türk Tarihi Dergisi 3 (57) (2001); Kemal Lokman, ―Türkiye'de Petrol Arama Amacıyla
Yapılan Jeolojik Etütler,‖ Maden Tetkik ve Arama Enstitüsü Dergisi 72 (1969), pp.219–247;
Kemal Lokman. ―Memleketimizde Petrol Araştırmaları‖. Web.
29
Behice Tezçakar. ―Erzurum- Pülk‖.
30
Ferah Çark, ―19. Yüzyıl Osmanlı Devleti’nde Neft Ve Petrol Üretimi Ve İmtiyazları,‖ MA
Thesis, Istanbul/ Marmara University (2016).
9
Secondary sources regarding the international context and rivalry on Ottoman oil
were utilized in the main chapter of my thesis.31 In the same chapter, I mainly
used İlber Ortaylı’s study32 while discussing oil and railway concessions to
Germany. Besides, Engin Deniz Akarlı’s Abdülhamid II and the East-West
dichotomy33 and Marian Kent’s Empire: British Policy and Mesopotamian Oil;
1900–192034 were remarkable secondary sources while trying to explain Ottoman
balanced policy regarding oil in the related chapter.
31
Marian Kent, The Great Powers, ;David Fromkin. A Peace to End all Peace. : the Fall of the
Ottoman Empire and the Creation of the Modern Middle East. n.p.: New York : Avon Books ,
[c1989]., Edward Mead Earle, Turkey. Etc.
32
İlber Ortaylı. ―Abdülhamid döneminde‖
33
Engin Deniz Akarlı. Abdülhamid II.
34
Marian Kent. Oil and Empire.
10
1. 3 Literature Review
One of the last studies on the Ottoman oil concession is a master thesis which
means ―Naphtha and Petroleum Production and Concessions in the 19th Century
Ottoman State‖ 35 in English. This study mentions oil production, consumption,
and concessions through oil business in the Ottoman Empire. This thesis focuses
on oil as financial figure and diverse usage of oil in the empire, but does not
examine Ottoman oil concessions and oil policy deeply. Moreover, the study
restricted with Turkish literature, heavily relying upon some secondary sources in
particular besides main sources.
Another master thesis about the Ottoman oil concession is written by Behice
Tezçakar.36 She discusses the story of oil in the Ottoman Empire by focusing on a
small oil field, Erzurum- Pülk oil and concessions. Tezçakar claims that she
studied the overlooked aspect of the story of oil by examining unpublished
primary sources of Yıldız collection. She defends that the granting of a concession
for a small oil field like Pülk oil source shows the granting oil concession
mechanism of the Empire. However, though it is possible to argue that small oil
field can give essential clues to understand oil concession apparatus of the state,
which possibly showed the relation network among these apparatus, an analysis of
other oil fields especially bigger and more controversial ones can demonstrate a
different picture. In this regard, Mesopotamian oil resources and concessions have
35
Ferah Çark, ―19. Yüzyıl Osmanlı‖.
36
Behice Tezçakar, ―Erzurum- Pülk‖.
11
very different structural apparatus and actors than Erzurum-Pülk oil concessions
according to my study thus; this argument can not be verified.
She also says the main concern of her study is to examine the State mechanisms
from their different point of views to oil concessions and the relationship between
the different structures like the Sublime Porte, the Council of State and the Fourth
Army in the State’s decision-making process. Whereas, the main actors were
Sultan Abdulhamid himself and his Privy Purse while granting oil concessions
according to the study. In addition, she tried to discuss these over Ottoman center-
periphery paradigm within the scope of the era of Abdulhamid II.
Volkan Ş. Ediger’s book Osmanlı’da Neft ve Petrol: Enerji Ekonomi-Politiği
Perspektifinden37 (Naphtha and Oil in the Ottoman Empire: From the Perspective
of Energy Economy-Politics), discusses the history of oil in general and in the
Ottoman Empire in particular. He also studies Ottoman oil concessions and actors
who seek oil concession. Ediger’s work is the most comprehensive study on this
subject. However, his study did not focus on Ottoman oil policy.
Another comprehensive study related to the Ottoman oil is Arzu Terzi’s book
meaning ―The Unshared Inheritance in Baghdad-Mosul: petrol and land, 1876-
1909‖ 38 in English. Terzi studied the Mosul and Baghdad oil reserves and
concessions. She argues that the Ottomans were aware of rich oil resources of the
region and they aimed to operate them. Although her book is deals only the
Mesopotamian oil, it can be considered a leading valuable source on the topic.
37
Volkan Ş. Ediger, Osmanlı’da Neft.
38
Arzu Terzi, Bağdat-Musul'da.
12
Some authors dealt with the topic in a populist manner aiming a large audience
and to raise awareness about source related answers. Suat Parlar’s book
Barbarlığın kaynağı petrol39 (Petrol as Source of Barbarism) and Raif Karadağ’s
book Petrol Fırtınası40 (Petrol Storm) are examples of these studies. Hikmet
Uluğbay’s İmparatorluktan Cumhuriyete Petropolitik41 (Pertopolitics from The
Empire to the Republic) has more academic concerns than these two books. In this
regard, Uluğbay’s study also has a small part about Sultan Abdulhamid’s oil
policy. In a nutshell, He claims that Abdulhamid II had not a national oil policy
but personal choices of the Sultan. Besides, Vahdettin Engin’s book Bir Devrin
Son Sultanı II. Abdulhamid42 (Abdulhamid II The last Sultan of an Era) includes a
part related to Abdulhamid’s oil policy. However, this part of the book has the
characteristics of a review telling the history of Ottoman oil during the sultanate
of the Sultan.
I should also mention Marian Kent’s Oil and Empire: British Policy and
Mesopotamian Oil, 1900–192043as a related study to my subject. Kent’s study
was important due to its approach on German-British oil rivalry in the Ottoman
Empire. He mentions Abdulhamid’s foreign policy about oil in the section,
―Early Rivalries for the Mesopotamian Oil Concession‖. Tülay Duran’s article
meaning ―Concessions in the Ottoman Empire: Emery-Sulphide-Petrol (Naphtha)
39
Suat Parlar, Barbarlığın kaynağı petrol.
40
Raif Karadağ. Petrol Fırtınası, Divan Yayınları, İstanbul, 2004.
41
Hikmet Uluğbay, İmparatorluktan.
42
Vahdettin Engin, 2. Abdülhamid.
43
Marian Kent, Oil and Empire.
13
and Molybdenum Concessions‖44 in English is also related article seems related to
Ottoman oil concessions by looking at its title. It discusses only the oil
concessions granted between 1913 and 1917: Duran’s article still draws a good
frame as an inception to understand the general context of Ottoman oil
concession.
Lastly, the oil studies published in Maden Tetkik ve Arama Enstitüsü Dergisi
(Mineral Research Exploration Institute) were efforts to the subject from a
technical perspective. They are generally detailed works, which provides
significant summaries of the information on oil works and operations especially in
the Anatolia. Kemal Lokman’s and Cevat E. Taşman’s studies were important in
regards with the Ottoman oil explorations and concessions.45
44
Tülay Duran, ―İmtiyazlar‖.
45
In that journal, Kemal Lokman’s and Cevat E. Taşman’s studies contributed to the literature
essentially. Some of the related articles in MTA magazine on the subject which were cited before.
14
1. 4 Thesis Structure
This thesis has five chapters. First is the introduction chapter containing subject,
sources, literature review and thesis structure sections of the study. In the second
chapter, I discuss the historical background of oil and concession before the 20th
century and, after that, the changing nature of Ottoman concessions. In the first
part of this chapter, I write a short background on the history of oil before the
Industrial Revolution. The second section of the chapter discusses the history of
oil in early 1800s by focusing on how oil started to replace steam and coal in
industrial production. In the following section, I explain that how petroleum
emerged as a valuable resource in the world history. ―Concession‖ is defined in
the next section and structural content of Ottoman concessions were specified.
The fifth section of the second chapter illustrates capitulation examples from the
classical ages of Ottoman Empire then from the 19th century. In the last section of
the chapter, I explained how the nature of concession changed in the Empire with
some examples. This change in the Ottoman Empire especially during the 19th
century will provide showing the changing perception of the concession regarding
the Ottoman oil concessions, which is at the core of this study.
The third chapter explains the history of oil in the Ottoman lands. I discuss some
examples of the usage of the oil in the Ottoman Empire to demonstrate the
development of oil in the country including its history during the Hamidian Era.
The following section draws on efforts to discover and operate oil in the Ottoman
Empire. For this, the territory of Çengen in the vicinity of Iskenderun is very
important to evaluate as the first location for oil drilling in Anatolia.
15
The fourth chapter of the thesis is my main chapter, where I evaluate and discuss
the Ottoman oil concessions and Ottoman oil policy during the Hamidian era.
This chapter has six important sections. The first one is on the Ottoman statesmen
and early interests for oil concessions. The second section of the chapter analyses
the mineral regulations and the procedure for obtaining concessions in the
Ottoman Empire during the Hamidian era. After that, I start to discuss the
international interests and rivalries over Ottoman oil resources. In the forth
section, I specifically focus on German influence and the Anatolian Railway
Companies’ concessions to extend my argument. The following section illustrates
the 1904 Agreement and its importance for the history of Ottoman oil
concessions. Finally, I try to evaluate Abdulhamid II’s famous ―balanced policy‖
regarding the oil resources of the Empire through the oil concessions as
bargaining chips. After the main chapter, there is the conclusion part of my thesis
as fifth chapter.
16
CHAPTER II
HISTORICAL BACKGROUND
Oil46 was known as a black inflammable matter including intensive solid forms
known as pitch and bitumen throughout the history.47 This black substance is not a
newly discovered wealth. Therefore, introducing the history of oil in a large extent
is essential to establish a frame for upcoming chapters because many different
civilizations, existed in those regions throughout the history, transferred their
experiences on oil to the Ottoman Empire.
This chapter also analyzes the history of Ottoman concessions from the classical
Age of the Empire to the 19th century with some certain examples for showing the
changing nature of the Ottoman concessions. This is important to constitute the
basis for explaining the perception of Ottoman oil concessions in the minds of
Ottoman authorities.
46
Oil chemically consists of hydrocarbons, hydrogen and carbon. In addition, it can be in gas,
liquid and solid types, according to its carbon and hydrogen ratios. It is known that crude oil is
liquid phase, gaseous state is natural gas and solid state is asphalt or bitumen. See, Raif Karadağ.
Petrol Fırtınası, 3.
47
See Hikmet Uluğbay, İmparatorluktan, 1.
17
2.1 Oil: Before the Industrial Revolution
History of oil, as researchers indicate, goes as far back at the time of Noah the
prophet. According to the religious text,48 Noah caulked his ark with pitch or
bitumen both inside and outside. He provided oil for this project from the Hit
town, which was along the Euphrates River.49 This demonstrates that using the oil
is not new for human beings.
In the Middle East region, oil and its derivatives have a long history; there are
archaeological data on the use of pitch and crude oil spills for various purposes in
the region especially in today’s Iraq. ―Naptu‖ in the literatures of Assyria,
Babylon and Elam, ―İkurra‖ in the literature of the Sumerians, and ―Neft‖ in the
sources of Islam were used to define oil.50 In addition, it is said that ―nafta‖ or
―neft‖ were used to describe oil and its derivatives in the Ottoman Empire.51
Moreover, the word ―neft‖ was introduced in the Ottoman language from Arabic
but it is also claimed that it could be introduced from Persian.52 According to R. J.
Forbes, the word ―nafta‖ was first used in Arabic language.53 Therefore, it can be
said that Ottomans took the word ―neft‖ from Arabs.
48
The book of Genesis, chapter 6.
49
F. R. Maunsell, ―The Mesopotamian Petroleum Field‖, Geographical Journal 9: 5, May 1897.
Cited in Hikmet Uluğbay, İmparatorluktan, 1.
50
Mustafa Gökçe, ―9–17. Yüzyıl,‖ 160–172, and 160. See Ferah Çark, ―19. Yüzyıl Osmanlı‖, 18.
51
Tülay Duran. ―İmtiyazlar,‖ 64.
52
Nafta; It refers to a kind of light oil spill on the ground naturally in Mesopatamia, Baku and Iran.
It is a colorless, flammable and volatile liquid hydrocarbon mixture.
53
R. J. Forbes, Studies in Early Petroleum History, Leiden, E. J. Brill, Netherlands, 1958, p.149.
Cited in Ferah Çark, ―19. Yüzyıl Osmanlı,‖ 18.
18
On the other hand, the word ―petrae-oleum‖ means ―rock-oil‖ in Latin that
consisted of Petra (stone) and oleum (oil) and the first use of this term was during
the Renaissance era.54 This material is also expressed as mineral oil, kerosene,
petrol and fuel oil in today’s world, which the English call "petroleum", the
French ―petrole‖ and the word ―petrae-oleum‖ generally comprises Western
definitions of oil.
In terms of historiography, the first descriptions resembling oil appeared around
2000 B.C.E. in Babylon tablets with the word ―naptu‖ meaning ―suddenly
inflammable‖ liquid.55 Sumerian, Assyrian and Babylonian civilizations used oil,
which leaked into the earth by infiltrating the cracks in the rock layers due to its
own gas pressure, to make apparels, to glue mosaics, road construction, ship
caulking, paint compounds preparation and medicine.56 Of these three, especially
Babylonia developed very effective techniques for using oil. In fact, Babylonians
used oil in the shipbuilding industry by caulking ships as it was mentioned in the
Hammurabi Law.57
In some sources, it is mentioned that oil in bitumen form was used in the
construction of the Babylonian Gardens built by Semiramis, who was the Assyrian
queen of the period of the founder of the Babylonian state, in B.C. 9th century.
Even during the reign of Nebuchadnezzar (d. B.C.E. 562), the king of Babylon
54
Volkan Ş. Ediger, Osmanlı’da Neft, 80.
55
Cited in Hikmet Uluğbay, İmparatorluktan, 1. Lionel Casson, ―Imagine a time when oil was
only a nuisance,‖ Smithsonian December 1991, Vol. 22 No: 9 p. 109.
56
57
The Laws legislated that how oil was important and also specified charges for ship caulking, as
well as the poor quality of the work. See Hikmet Uluğbay, İmparatorluktan, 1.
19
during B.C.E. 604–562, the information of ―Eternal Fire‖ was constituted by the
ignition of gas spills in the region and bitumen usage in the construction of
bridges by Nebuchadnezzar, can be seen today.58 Moreover, some historians argue
that the reason to why the Babylonian King Marduk-Nadine-Ahhe fought a war
against the Assyrians after his ascension of the throne was not only to keep the
waters of the Euphrates under the control, but also to control oil resources around
Hit.59 This can support that argument oil was a strategic resource for these
civilizations at that time.
Oil was mentioned in the writings Herodotus (d. B.C.E. 420–430). The Greek
historian stated that oil was used in the construction of the walls of Babylon in his
writings. In the 5th century B.C.E., he wrote that oil leaks were found around the
Iranian-Kuwait border of today. Herodotus noted that local people extracted oil
from wells (where the oil spills accumulated) by some sticks having some leather
pieces at their tips, and they put the oil in pots as flammable products. Herodotus
mentioned also that the richest oil deposits were around Hit territory among the
regions he visited.60 Just like Herodotus mentioned, the Mesopotamia region is
still rich in oil.
In myths and traditions of Greek and Roman civilizations, petroleum coming from
the leaks was assessed in various purposes. For example, Medea61 burnt her rival
58
Volkan Ş. Ediger, Osmanlı’da Neft, 4-5
59
Cited in Hikmet Uluğbay, İmparatorluktan, 1. The Cambridge Ancient History, Volume II,
Section II, Middle East and Agean Region, p.465.
60
Cited in Hikmet Uluğbay, İmparatorluktan,1. (Translated Turkish to English) Lionel Casson,
―Imagine,‖ 109.
20
with oil in Greek mythology. In addition, the Greek writer Plutarch (50–125)
recorded that when Alexander the Great conquered in 331 B.C.E., local people of
the region met him with demonstrations using oil.62 Plutarch describes the show
that was presented to Alexander as follows:
The road was poured in the naphtha until the headquarters of

Alexander, and in the darkness of air the liquid was fired from
the opposite side, and all the way was blinded to the fire.63
Oil was also used to produce weaponry in Greek history.64 One of the most
influential weapons of the history was ―Greek Fire‖, which was produced from
petroleum. The easy ignition of this resource, which the Greeks obtained it by
mixing oil and lime, made it possible to have great ability to cause substantial
damage in wars.65 The Greek fire was first produced by exploiting oil from the
leaks around Al Hahr (Iraq). In the history for the first time, Greeks successfully
used this weapon against Severus, the Roman Emperor from 193 to 211 to
overthrow the famous siege strategy of Severus.66 The Greek fire had widespread
usage in later wars both on lands and at sea because some developments made it
easier to use in wars. However, after the effective use of the gunpowder as a war
material, oil had lost its importance as a strategic war material.67 In that regard,
the changing developments and tendencies in war traditions shaped the usage of
oil in the history of weaponry.
61
The daughter of King of Colchis. She has some supernatural powers according to legends.
62
63
Cited in Hikmet Uluğbay, İmparatorluktan, 2.Lionel Casson, ―Imagine,‖ 110.
64
It would be used in both the Ottoman and the Byzantine Empire.
65
Suat Parlar, Petrol, 12.
66
F. R. Maunsell, ―The Mesopotamian,‖ 2.
67
Cited in Hikmet Uluğbay, İmparatorluktan, 2. Lionel Casson, ―Imagine,‖112.
21
Some historians made a relation between Zoroastrianism68 and the existence of oil
in the Middle East. Sources claim that in the 5th or 6th century B.C.E during
worshiping rituals to the ―Eternal Fire‖ Iranians raised oil ignition.69 For instance,
one of the first known oil fields in the history is the Apşeron Peninsula in the
Caspian Sea. It is likely that the continuous burning of the fire led Zoroastrianism
to be established, which was regarded as the basis for good by Zarathustra.70 That
can prove that the ―Eternal Fire‖ created remarkable religious meaning/effect on
people who lived in the region.
Besides, Noah the prophet claimed to caulk his ark with pitch or crude oil, Moses
the Prophet was correlated with history of oil. According to Niyazi Acun’s study,
the mother of Moses left him in the Nile by putting him to a paved basket in clay
and pitch at the time of the birth of Moses. Jews also traded the oil by selling pitch
that had obtained from the Dead Sea.71 Therefore, some sources indicated that oil
was used a commercial commodity during the time of Moses the Prophet.
There are other civilizations, which dealt with oil for other purposes. For example,
it is a well-known fact that the oil obtained from the fields in the Libyan deserts
was used in the mummification of pharaohs in the classical Egyptian
civilization.72 In addition, Arabs melted the asphalt and obtained kerosene for
lighting purposes in the Middle East.73
68
Religion of the worshipers of the fire.
69
70
Cited in Ferah Çark, ―19. Yüzyıl Osmanlı,‖ 19. Daniel Durand, Milletlerarası, 10.
71
Niyazi Acun, Dünya Petrol Tarihi ve Türk Petrolü, 28.
22
For the centuries after Islam, there were many Muslim travelers and observers
who wrote about their travels books mentioning the existence of oil in the Middle
East. For example, Ebu İshak İbrahim bin Muhammed El-Farisi (d. 990s) an Arab
geographer mentioned the oil deposits around Baku in his travel book, Countries
and Occupations in 951.74 Şemseddin Ebu Abdullah Mukaddesi (d. unknown)
another Arab geographer noted the existence of oil resources in Darap city of Iran,
in his book The Most Beautiful Partition in the Science of Climate in 985. He
denoted that these oil resources were found in a particular cave and collected for
the needs of Shiraz Palace.75 These sources are important to indicate that oil was
known in the Muslim world. Besides these geographers, ―neft‖ or ―nafta‖ had
been discussed in the studies of the Muslim scholars and historians especially
after 9th century; such as Belazûrî in 9th century, Ebu Dülef in 10th century
Cüveynî in 13th century, Kazvinî in 14th century, Evliya Çelebi 17th century and
Kâtip Çelebi in17th century.76
On the other hand, European travelers like Marco Polo in 13th century discussed
neft production in the Middle East especially around the Caspian Sea.77 For
example, Marco Polo described that some oil cargos around Baku were shipped
72
73
Cited in Ferah Çark, ―19. Yüzyıl Osmanlı,‖ 19. Bumin Gürses, ―Petrol Konusunda Genel
Bilgiler,‖ Madencilik Dergisi, Ağustos 1968, volume 7, number 3, 175–180.
74
In 1225, Yakut el-Musta’simi in his book which was titled the Mujam al-Buldan, gave more
detailed information on oil sources in the region by specifiying that daily production of the
naphtha is a thousand dirham worth. Moreover, it expresses that the naphtha is in the fire by the
reason of continuous flow. Cited in Hikmet Uluğbay, İmparatorluktan, 2.G. Le Strange. The Lands
of Eastern Caliphate, Frank Cass and Co. Ltd. 3Ed. 1966, p:180–181.
75
Cited in Hikmet Uluğbay, İmparatorluktan, 2. G. Le Strange, The Lands, 289.
76
Mustafa Gökçe, ―9–17. Yüzyıl,‖ 160.
77
Mustafa Gökçe, ―9–17. Yüzyıl,‖ 160.
23
and analyzed these resources as ―not good to use with food‖ but well to burn.78 It
can be concluded that oil was known resource used in many different civilizations
for different purposes throughout the history before the Industrial Revolution.
2.2 Oil: Early 1800s
From the 18th century to the beginning of the 19th century was a significant period
of time for human being with the emergence of industrialized types of
productions. Mining coal-powered furnaces had been used instead of wood-
burning quarries. Stronger steel tools had been used in place of wood or iron tools
in the agriculture; and steam output as a new source of power was discovered in
the production industry,79 thus technological and complex machines had been
started to be used for the industrial production.
This period was named as a period of Industrial Revolution, which had increased
production volume and correspondingly, growing demand for energy resources.80
Therefore, various raw materials and energy resources were needed to ensure the
continuity in the Industrial production.
78
Cited in Behice Tezçakar, ―Erzurum- Pülk,‖ 23. David White, ―Outstanding Features of
Petroleum Development in America,‖ AAPG Bulletin 19, no. 4, (1935), 469–502.
79
Ferah Çark, ―19. Yüzyıl Osmanlı,‖ 11.
80
24
After the Industrial Revolution, industrializing countries started to seek alternative
energy resources to coal as a response to the growing demand for energy. Oil,
which was used only in premature forms of utilizations, emerged an alternative
energy resource in the late nineteenth century. Afterwards, oil would replace coal
and steam power as an essential energy resource. Especially after the mid 19th
century, oil usage would become widespread and more efficient. Complicated
machines working with oil would be used instead of simple machines which
worked with steam power and coal.81 In that way, oil would become a valuable
asset in the industrial production.
2.3 Emergence of Petroleum as a Valuable Asset
An American George Bissell, who was a lawyer in New York, first raised the idea
of oil search, operation and gaining a commercial profit from this resource.82
Bissell thought that oil was an important and promising commodity for the
investment. In an effort to investigate its potential for trade, Bissell and his
partners83 wished to know whether oil could be used for the function of coal oil or
whale oil, which was widely used in various fields at the time.84
81
Raif Karadağ, Petrol Fırtınası, 5–12.
82
83
This group of investors would establish ―Pennsylvania Rock Oil Company‖.
84
25
Bissell asked his friend Professor Benjamin Silliman Jr. at Yale University to
analyze the oil, his team discovered in the Oil Creek region of Pennsylvania.
Professor Silliman Jr. was known as one of the most respected scholars at the time
in physics and chemistry.85 His report, dated on April 16 1855, claimed that oil is
a promising energy resource and was released to the partners.
In the report, Silliman highlighted the significant potential with new uses for rock
oil. Silliman wrote to the partners ―a very high-quality illuminating oil.‖ Silliman
added ―…they may manufacture very valuable products‖86 for energy from oil.
Therefore, this report was the most persuasive proof for the enterprise, which
contributed to the establishment of the company named Pennsylvania Rock Oil
Company. This report also showed that it was suitable to produce kerosene with
very good quality of rock oil and that this resource should be used in other areas
to generate energy.87 Silliman’s study was very comprehensive for further projects
for oil resources.
This report was a turning point as Daniel Yergin88 also noted, ―a turning in the
establishment of the petroleum business‖ in commercialization of the use of oil.89
Thus, Silliman’s analyses established the necessary ground for the
commencement of commercial search for petroleum.
85
Daniel Yergin, The prize, 4.
86
This report cited in Daniel Yergin, The prize, 6.
87
See Volkan Ş. Ediger, Osmanlı’da Neft, 81.
88
He is a leading writer on energy and geopolitics, and evaluated this report.
89
Daniel Yergin, The prize, 6.
26
On the other hand, Bissell was considering using ―the salt drilling technique‖90 to
search oil resources, which was applied in China. Edwin L. Drake91, a retired
conductor from a railway company, was preferred for the application of this
technique. In 1859, the first commercial oil drilling in the world history was
carried out by Drake at Oil Creek in Titusville, in the state of Pennsylvania
USA.92
In terms of the oil production, which was 282 tons per year in those years, it
would exceed 20 million tons in the early 20th century. 93 In that regard, 1860s can
be called kerosene production period for illumination purposes.94 The oil
production rapidly increased after the realization of its potential as an energy
resource.
Table 1: World Oil Production between 1857 and 1940.
YEARS BARRELS TON
1857 1.977 282
1860 508.578 72.652
1865 2.715.524 387.932
1870 5.799.214 828.459
1875 9.977.348 1.425.335
90
This technique was first used in China for drilling and after som emodifications, this technique
could be used to drill oil.
91
He was known as Colonel Drake.
92
Daniel Yergin, 2008. The prize, 11.
93
Daniel Yergin, 2008. The prize, 11.
94
27
Table 1 (Continued).
1880 30.017.606 4.288.229
1890 76.632.838 10.947.548
1900 149.132.116 21.304.588
1910 327.937.629 46.848.023
1920 694.824.000 99.264.837
1930 1.411.904.000 201.700.000
1940 2.147.915.000 306.845.000
Source: Cevat E. Taşman, 11, 12 and 13.95
In early 1900s, oil gained more importance due to the increase in usage of oil
engine for industrialization, mechanization and automotive industry. There have
been many developments in the different fields along with the industrial
revolution. For example, oil had been refined and used for illumination.96 The
extracting oil by drilling under human control had encouraged the idea that it
could also be used in new areas like its use as a fuel for engine, which burns the
fuel to create energy.
The main increase in oil production occurred with the development of the motor
vehicle industry such as cars, trucks and planes.97 In the late 19th century, major
developments such as the discovery of gasoline-powered vehicle made it possible
to enhance the use of oil with enormous numbers. For example, in 1910, sales of
95
Adopted from Cevat E Taşman. Petrolün Tarihi, www.mta.gov.tr (Accessed: 20 February
2018), 11 12 and 13.
96
See Ferah Çark, ―19. Yüzyıl Osmanlı,‖ 28.
97
Tülay Duran, ―İmtiyazlar,‖ 64.
28
gasoline passed kerosene sales with developing automotive industry and spread of
electricity use in the US. In the 1940s, oil production reached 300 to 500 million
tones per year, and the production at this gigantic scale continued to increase.98
Consequently, the struggle for acquaring territories with oil resources has begun
with these emerging developments. Oil gained more value with the developments
of mechanization.
The oil business was based on capital by its nature. Also, it was known that
affiliates in oil exploration have significant risks to lose great amount of capital to
reach the oil resource in a well, but also the quality of the oil. In that regard, the
history proved that big companies like Standard Oil of USA or British Petroleum
of Britain, which have hegemony in the process from the oil exploration to the
production, dominated this sector.99
Accordingly, the rising importance of the oil industry has not escaped from the
attention of major investors. The Standard Oil Company, which was established
by John D. Rockefeller100 in 1870, had controlled 80% of the refinery market and
90% of the oil pipelines in the USA.101 This company, which was the strongest of
the Seven Sisters102, hired spies all over the world to seek oil resources.103 These
98
Necmettin Acar, ―Petrolün Stratejik,‖ 5. See Ferah Çark, ―19. Yüzyıl Osmanlı,‖ 29.
99
See Ferah Çark, ―19. Yüzyıl Osmanlı,‖ 27–28.
100
Daniel Yergin, The prize, 20–21.
101
Daniel Durand. Milletlerarası, 26–27.
102
Anglo Persian Oil Company (British Petroleum), Gulf Oil, Standard Oil of California
(Chevron), Texaco, Royal Dutch Shell, Standard Oil Company of New Jersey (Exxon), and
Standard Oil Company of New York or Socony (after merging with Exxon become ExxonMobil).
For further information, see Daniel Yergin, The prize, chapter I.
29
―sisters‖ consisted of seven big companies, which controlled the world oil market
from the last quarter of the nineteenth century to the first quarter of the twentieth
century. Five of these companies were the cooperations of the Americans and one
of them was established under the control an English cooperation. Last one was
known Royal Dutch Shell, multinational oil company established in the
cooperation of the English and the Dutch.104
There were a rivalry between these companies like countries, and each used every
means to prevent others from discovering new resources of oil.105 This proves that
oil turned to a valuable asset causing international conflicts before even 20th
century. When the history of industrialized countries is examined, they generally
struggle with other countries to acquire natural resources especially oil, because
oil has become the most precious and unrivaled raw material of the world.
Because of these rivalries, revolutions and instabilities have been seen in the
countries, which have rich oil reserves. These countries could not have stable
structures especially in the Ottoman Middle East.
Consequently, oil has gained the character of a material that can be turned into
money and power politically, militarily and economically since the late 19th
century.106 Its future was precisely diagnosed as ―Oil is the power to control the
103
It can be said that they must have sent its spies to the Ottoman territories to try to be the first to
identify oil sources in the Middle East.
104
Behice Tezçakar, ―Erzurum- Pülk,‖ 27.
105
Cited in Behice Tezçakar, ―Erzurum- Pülk,‖ 63. Antony Sampson, The Seven Sisters: the Great
Oil Companies and the World They Shaped. (New York: Bantam Books, 1976), p. 31.
106
Tülay Duran, ―İmtiyazlar,‖ 63.
30
world.‖107 Today; almost all working machines, vehicles or industrial instruments
are related with oil and even wars are being fought for it and by using it. Along
with these developments, efforts have been started to explore oil and obtain oil
concessions in many parts of the world,108 especially in the Ottoman territories.
2.4 The Concept of Concession
Concessions109 are usually based on slow but steady colonization policies of the
Great States of Europe. These policies generally are composed of obtaining
operation rights of natural underground or overland resources, transportation and
finance sectors, as well as free trade privileges from underdeveloped or
developing countries.110 In this context, these powerful states politically and
economically established pressures on the governments to increase or stabilize
their investments.111 In that regard, the concessions had served the interests of the
state that obtained concessions rather than the state that granted it.112 Therefore, it
is hard to find equally mutual benefits in the concession agreements.
107
Raif Karadağ, Petrol Fırtınası, 15.
108
Hikmet Uluğbay, İmparatorluktan, 1 and 31–33.
109
Literally, concession is a treaty or legal right whereby one state permitted rights to another state
in order to exercise extraterritorial authorization over its own lands within the scope of
international law.
110
Halil İnalcık. ―İmtiyazat,‖ 245–246.
111
Halil İnalcık, ―İmtiyazat,‖ 245.
112
Maurits H. Van Den Boogert, The Capitulations, Volume 21.
31
Concessions have generally created an unfair competition environment in the
concession granter country because granted concessions make ―foreign‖
concessionaires113 more privileged than local actors have. For this, the local
merchants preferred to operate their business under the patronage of
concessionaires in order to benefit from the status of privileged merchants.114
Therefore, this weakens the dominances of the granter state in economy, business
and trade within the state. Concession agreements also guarantee untouchableness
of concessionaires for their lives, properties, homes and work in a particular
frame.115 In that way, the provided commercial and legal privileges to
concessionaires were regulated widely.
2. 5 Concessions in the Ottoman Context
The term concession is known as capitulation from French in the scope of
Ottoman history but Ottomans named the term as imtiyaz, which was related to
commercial concessions and rights to Western merchants and countries. The most
important condition of giving a concession was that concession requesters should
apply with the promise of friendship and loyalty to the Ottoman Empire. Indeed,
this had always been pointed out in the first line of the agreement related to the
113
A person, an establishment or a country that has been given the right to have a priviliged
business in a particular place. See Edwin Black, Banking on Baghdad, 108.
114
115
32
subject.116 Moreover, Ottoman capitulations were granted as signs of ―favour‖ on
the part of the Sultan as response to loyalty and sincerity of concession requesters.
Substantial types of legal documents regarding concessions can be found in the
Ottoman Empire. If the concessionaires guaranteed that they would keep peaceful
relations with the Ottoman Empire on the condition that they kept their word as it
was written, the Sultan in his turn granted the implementation of the
capitulations.117 This was known as ahidname,118 ―letter of promise‖. These
concession agreements were regulated in the form of berat.119The conditions of
the ahidname were clearly written and sent to the Ottoman local authorities such
as kadı and beylerbeyi in the regions mentioned in the concession assigned in the
granted concession region.120 The conditions were clearly ordered to be obeyed in
a firman. As was the case with berats and ahidnames, all agreements of the
concessions were limited with the lifetime of the Sultan who granted it. If the
following Sultan approved these capitulations, they would be renewed.
The Sultan gave these concession rights unilaterally. However, Ottomans
expected political benefits, friendship and alliance from the foreign state
requesting concessions, regarding economic and financial interests of the Empire.
116
In the Ottoman Empire, the principles of Islamic law especially Hanafi sect of Islam were
always respected and considered while giving capitulations to the Westerns. the Ottoman
concessions were not issued out of the principles of Islamic law. For example, if there was an issue
between müste'men(A foreign merchant who has concession rights) and a Muslim, a related fatwa
had to be taken to solve the issue. Halil İnalcık. ―İmtiyazat,‖ 246.
117
Maurits H. Van Den Boogert, The Capitulations, 19.
118
In the Arabic ahd means promise, with the Persian name means letter. See Maurits H. Van Den
Boogert, The Capitulations, 19.
119
A kind of document of licence in Ottoman Empire.
120
33
For instance, these expectations included an alliance in the Christian world and
the provision of raw materials or produced goods that were needed by the
Empire.121 If the Sultan did not see any mutual benefit, he could cancel ahidname
of concession by indicating that the friendship and the sincerity of the
concessionaires that existed before were broken and violated.122 The mutual
benefit was the basic expectation of the Ottomans while granting concessions.
As to how and to whom concessions were granted, first concession in Ottoman
history was granted Genovese. 123 Although this text is lost, there is an ahidname
dated 7 June 1387 as İnalcık noted. The Ottomans had good relations with the
Genovese who were fighting with Venice at the time when Ottomans captured
Rumelia in 1352.
In 1400s, Ottoman Sultans granted many capitulations to Venice. For instance,
there was a concession agreement between Venice and Murad I of the Ottoman
Empire in the peace treaty of 1419.124 Bayezid II renewed these concessions to
Venice in 1481 and 1503.125 These capitulations were granted by Selim I in 1513
121
They would also pay attention to issues such as increasing customs revenues and providing
robust cash to the Ottoman treasury. For Further Information, see Halil İnalcık, ―İmtiyazat,‖ 246.
See Maurits H. Van Den Boogert, The Capitulations, 19 to 21.
122
Halil İnalcık, ―İmtiyazat,‖246.
123
124
After his father, Bayezid I used these trade concessions in diplomacy by prohibiting or
permitting the export of cereals to Venice. Halil İnalcık, ―İmtiyazat,‖ 248.
125
Venice had the privileges of trading in the Black Sea in addition to the previous concessions.
After1503 the Ottoman peace treaty with Venice, the concessions were further expanded
34
and renewed again by Suleiman the Magnificent in 1521.126 These concessions
were granted to Venice as signs of peace.
The concessions granted to Venice would be used as models for upcoming
concession rights to the European states. However, this claim was a bit
exaggerated according to Halil İnalcık. In this respect, İnalcık stated that the
Ottomans adopted applications of the Anatolian principalities, which were
established in the region after the collapse of Anatolian Seljuk Sultanate, more
extensively while giving concessions to Europeans.127 In addition, he noted that
the value of the concessions increased remarkably after conquering of Mamluk
lands. For example, Selim I correspondingly renewed the granted concessions of
the Mamluk Sultans to Venice in 1517.128
Until the 18th century, the Ottoman Sultans unilaterally granted all concessions of
the Ottoman Empire. As an exception, the capitulation of 1569 to France, which
laid the foundations of ahidname by Suleiman I in 1536, was in the form of a
treaty between the two sides. Therefore, İnalcık argues that this concession was
the first actual Ottoman concession according to Inalcık.129
Shortly, the main expectation of the Ottoman Sultans was to find allies in Europe,
while giving these concessions.130 Until the end of the 18th century, Ottomans
126
Halil İnalcık ―İmtiyazat,‖ 248.
127
128
129
35
continued to keep its traditional attitude in the commercial relations with states of
Europe. Concessions to the foreign states were not big threats to the economy of
the Empire because the Ottoman authorities were mainly in a strong position to
prevent attempts of economic abuses and harms.131 However, European states
would begin to exert pressure on the Ottoman Empire in the 19th century, which
they would name as ―sick man of Europe‖, to gain more concessions.
2.6 The Changing Nature of Concessions
After the Industrial Revolution, Western states especially Britain were trying to
benefit from the Ottoman lands through establishing beneficial, safe and stable
market in order to meet their needs including raw materials and new markets.
Britain succeeded in this matter by taking advantage of the internal upheavals in
the Empire with the Balta Limanı Agreement of 1838. This commercial
agreement was a milestone concession that indefinitely confirmed the substantial
concession rights to Britain and decreased taxes in the imported goods while
imposing 9% custom tax on exports. This 9% tax caused substantial damage to the
Ottoman production sector. In addition, Ottomans abolished the old trade
restrictions of Britain in the Empire through this treaty.132 This concession
agreement triggered other treaties with similar conditions between Ottomans and
130
131
132
36
other European countries like France and Holland in the following years,133 which
caused the increase of the export of raw materials to Europe and these raw
materials were sold back to the Empire as manufactured goods with high prizes.
After these commercial agreements, the capitulations increasingly started to be
detrimental to the Ottomans. In addition, the commercial agreements and the
concessions between the Ottomans and Europeans were prepared bilaterally as
negotiated agreements.134 It can be concluded therefore that the commercial
agrement of Balta Limanı specified the end of the traditional Ottoman concession
system.135
On the other hand, Halil İnalcık claimed that the Ottoman statesmen of the
Tanzimat era136 strongly believed in that the fundamental step of the recovery of
the Ottoman Empire could be abolishing the foreign concessions. For this
purpose, they investigated solutions to prevent harms of these concessions while
taking precautions in the administration and the judicial system through
Westernization policies. For instance, Ottoman political leaders like Ali Pasha
(d.1871) hoped that becoming a member of the community of European nations
133
Charles Issawi, The Economic History of the Middle East, 1800–1914, 65–90.
134
See "Capitulations, Middle East." Encyclopedia of Western Colonialism since 1450.
Encyclopedia.com. (Accessed,June 21, 2018).
135
In this way, the Ottoman concessions started to be granted at the request of the foreign powers
and Ottomans were obligated to respond these demands as a financially vulnerable state.
136
The era refers to the attempted administrative reorganization of the Ottoman Empire between
1839 and 1876.
37
would ensure the abolition of concessions. However, concession treaties would be
renewed in 1861-1862, only some changes were made over customs rates.137
Unlike Inalcık’s claim, some of the Ottoman statesmen like Mustafa Reşid Pasha
(d.1858) and Keçecizade Mehmet Fuat Pasha (d.1869) believed that there was not
a significant danger in allowing Europeans greater access to the market of the
Empire and was barrowing money from them as long as they respected the
sovereignty of the Ottoman Empire.138
Accordingly, in an edict of 1867, it was stated that foreigners were allowed to
buy/acquire properties in the Empire and they could act under same economic and
legal conditions that Ottoman subjects had. According to the interpretation of the
French ambassador of the time, this was a very crucial concession that provided
unlimited rights to operate mines, agricultural and forestry assets of the Empire
for Europeans.139
The Western involvement and aspiration to the Ottoman Empire remarkably
increased during the period of the late 19th century. European embassies and
representatives were established all over the Ottoman regions to support the
interests of their merchants and missionaries.140 Therefore, there were political,
financial and military pressures of the colonial Empires of Europe over the
137
138
See "Capitulations, Middle East."
139
Cited in Halil İnalcık, ―İmtiyazat,‖ 251. Düstur; I, 230.
140
See "Capitulations, Middle East."
38
Ottoman Empire,141 behind the exploitation trials through the concessions and
missionary activities.
After all the aforementioned changes in the nature of the Ottoman concessions,
the sultanate of Abdulhamid II was also a significant period in terms of Ottoman
attitudes towards the Ottoman concessions. Abdulhamid II would not reject the
concession demands by foreigners, nor would he embrace these demands. He tried
to manipulate substantial concessions or new granted concessions regarding oil
concessions of the Empire to establish his ―balanced policy‖ between Great
powers.142 He had his own agenda for these foreign interventions through
concession demands. Thus, the Ottoman concessions in the Hamidian Era,
especially the oil concessions, would become an instrument for developing
policies in the international arena.
Consequently, the Ottoman concessions were not only related with international
politics and diplomacy or commercial relations of the Empire, they also regulated
contacts of the Ottoman Empire with foreigners during the classical age of the
Empire.143 Nevertheless, the concessions turned to a significant source of
European intervention in the affairs of the Empire in the 19th century.144 In that
regard, Abdulhamid II adopted a different approach towards concessions in
response to these interventions. The oil concessions were considered and
employed by the Sultan to gain leverage in the international arena. The functions
141
142
For this policy look at chapter four. See Marian Kent, Oil and Empire, 9.
143
See Maurits H. Van Den Boogert, The Capitulations, 6.
144
39
of the Ottoman concessions therefore was redefined by Abdulhamid II’s oil policy
and oil concessions as tools of foreign policy.
40
CHAPTER III
HİSTORY OF OIL IN THE OTTOMAN LANDS
This chapter discusses the history of oil in the Ottoman Empire, the rising
awareness of its importance during the Hamidian Era and lastly, the early efforts
to discover and operate oil/neft in the Empire in order to illustrate the story behind
the Ottoman neft and its concessions from the perspective of Ottomans. Therefore,
I firstly explain the history of oil in the Ottoman lands and the development of oil
use and the increasing awareness of its strategic importance in the Ottoman
Empire during the Hamidian Era. After that, I focus on the Iskenderun oil
operation in 1887 to indicate how and why Ottoman oil operations started in the
Empire.
My aim is to show that European interest considerably increased in potential oil
resources of the Ottoman regions towards the end of the 19th century. In response
to this, Abdulhamid II tried to develop an oil concession policy by increasing his
personal control over the oil reserves. To ensure this, the Sultan granted
concessions to people who would act under his control.
41
3.1 Oil in the Ottoman Empire (Before the Hamidian Era-1876)
Throughout history, neft145 has a wide range of use from illumination to
weaponry.146 It was also used in medicine besides shipping and lighting. For
example; aktars (herb and spice sellers) provided neft and its kinds for the medical
treatments such as tuberculosis.147 They were part of daily life of the Ottoman
Empire for centuries.
There are several documents that mention the use of neft oil during the conquest
of Istanbul. It was alleged that the blue flame balls, which were made from neft oil
or bitumen, were fired by levents (Ottoman marines) during the siege of
Constantinople, from nearby ―Kızkulesi‖ (The maiden's tower).148 This document
proves that neft was used by Ottomans as a weapon in 15th century.
Neft was mentioned in the kanunnames149 issued before the 17th century, in the
documents related to tax, which was collected from its trade. In that regard, there
were some articles in the aforementioned laws, referring how much tax will be
taken from its trade in the period of Selim I.150 The decrees related to various
145
Neft is a common name given to most of the flammable liquids formed by the decomposition of
organic compounds. Neft oil, as a term, meets the meaning of Naptha in Ottoman understanding,
also, existing literature generally uses Neft Oil to explain Naphtha- Petroleum (Oil). Many
different civilizations existed in Ottoman lands transferred their experiences on oil usage to the
Ottoman Empire.
146
147
Artin Asaduryan and Mehmed Fuad ―Veremin Petrol ile Tedavisi‖ ISAM Osmanlıca
Makaleler.1310. İstanbul Ma’lumat Vol: I: 18, p, 142. Also, see Volkan Ş. Ediger, Osmanlı’da
Neft, p. 29
148
Niyazi Acun, Dünya Petrol, p. 32.
149
Kanunname means Law or code of laws in the Otoman Empire .
42
sanjaks of Diyarbakır province demonstrate that the value of neft was determined
in terms of the Ottoman akçe151 based on its weight.152 For example; in a law
related to neft, in Amid sanjak,153 it is stated that:
... While five black akçes were taken from glass and copper loads ...
One hundred fifty akçes were taxed from zinc, steel and naphtha
weights.154
A load of neft155 was valued at 150 black akçes, while 5 kilos of pitch and tar were
being valued at 1 black akçe in the same kanunname.156 This may reveal that neft
was more valuable than pitch and bitumen at that time.
Evliya Çelebi (1611–1682), who was a famous Ottoman traveler, also mentioned
the Ottoman oil resources and its areas of usage, in his famous book
Seyahatnâme.157 His accounts inform us that neft was used for several purposes
throughout the Empire. Evliya Çelebi described neft mineral as musk-smelling
mud or black mud. He gave detailed information about some regions having oil
resources and how oil was used in these regions in the 17th century Ottoman
Empire. For example, he noted the existence of oil in the fortress of Van by saying
150
Selim I ruled 1512 to 1520.
151
The currency of the period.
152
153
Central Sanjak of Diyarbakır province.
154
155
The weight or a load of neft o means almost 100 kilograms or a camel load.
156
157
An Itinerary.
43
that there were linseed oil, bitumen, pitch and other various oils on different
cisterns of the cave. 158
Evliya Çelebi also indicated that neft oil was overflowing from rocks and flowing
into a sort of big pool near the fortress of Van during his travels to Eastern
Anatolia.159 He explains that neft was being carried from oil reserves of Baku to
other regions, while visiting the Azerbaijani region in 1641.
Oil was used for various purposes in the castles and countries on the eastern
borders of the Ottoman Empire.160 Evliya Çelebi specified the usage of oil in these
borders:
…They take this black naphtha and burn kindling around it.
When enemies attack on the soldiers, they throw quilts with neft
and fusty things to their feet to make fire games. It is necessary
for castle and city munitions.161
He also sheds light on the role of oil while defending the fortresses of Eastern
Anatolia.162 In addition, oil, tar and bitumen were significant raw materials for the
Ottoman navy.163 They have an adhesive feature for attaching planks while
158
Cited in Hikmet Uluğbay, İmparatorluktan, 5. Evliya Çelebi. Seyahatname. 6. Cilt..., 253.
159
Volkan Ş. Ediger, Osmanlı’da Neft, 35–36.
160
Evliya Çelebi wrote that merchants from Moscow come to buy neft, salt and saffron in exchange
for sable, squirrel etc. Hikmet Uluğbay, İmparatorluktan, 5.
161
Evliya Çelebi, Seyahatname. 3. Cilt, Zuhuri Danışman (translation), 298.
162
163
COA. C.BH.89/4277; COA. C.BH.95/4577; COA. C.BH.131/6370; COA. C.BLD. 3/130;
COA. C. BH.115/5564.
44
building a ship,164 thus these substances were used to increase the water
resistance of ships.
Evliya Çelebi also explained that the Ottoman Empire benefited from oil and its
derivatives in the shipbuilding industry. Çelebi notes the existence of an Esnaf 165
community for this industry and the shops for caulking.166 While introducing
various occupational groups in the Empire, he refers to the Kalafatçı Esnafı167 as
employees of sailors and he explains their work:
... They work on the sleds and caulk ships with the tombs in
their hands, the scraps, and pitch mobs; there is the tar and the
bitumen on their clothes…168
Evliya Çelebi’s accounts inform us that oil and its derivatives, such as the bitumen
or pitch had a significant role in the shipbuilding industry of the Empire.169
According to his notes, neft oil was a necessary and significant tool for the
defense of the Ottoman regions in the borders.170
On the other hand, Çelebi's observations reveal that there was awareness and
interest of Ottoman administration regarding the oil reserves of the Empire. One
of the reasons behind this effort was that oil constituted an important portion of
164
165
Artisan or craftsman.
166
167
A group of Caulker craftsmen
168
169
Hikmet Uluğbay, İmparatorluktan, 5–6.
170
Mustafa Gökçe ―9–17. Yüzyıl,‖ 160–172.
45
the trade at the time.171 Çelebi’s travel from Bahçesaray, the capital city of the
Crimea, to Kuyular village,172 proves oil was utilized in the region. During this
journey in 1666, he noted:
The stop of Kuyular village: There are lots of natural resources in their
clean soils of these villages. They take naphtha with ladles over the
water and burn them in the lamps. In the Ottoman Empire, they would
transfer it to miri mal173for the usage.174
As Evliya Çelebi stated they would transfer oil to miri mal in the Ottoman
Empire. This shows that there were similar known oil resources operating in the
Ottoman territories. Mine operations were conducted by maden eminleri175 (mine
trustees) who worked under the administration of the treasury.176 This proves that
neft resources provided direct income to the Ottoman treasury.
There are many documents containing information about the investigation,
preservation and the use of it. For example, several archival documents177 mention
that oil was utilized as a raw material for Tersane-i Amire.178 In the Tersane-i
Amire, resin, pitch and neft were used for manufacturing. Most of these minerals
were needed to protect the outer sides of the ships and to prolong their duration on
171
172
The village is known as region of seven wells in Crimea probably.
173
State or Imperial treasury.
174
Evliya Çelebi, Seyahatname. 2. Cilt, Zuhuri Danışman (translation).
175
He was the manager of mining operations in a particular mine and appointed directly from
centre.
176
177
COA. BH. 137/6619; COA. BH. 6/269; COA. BH. 131/6370; COA. BH. 143/6888; COA. BH.
164/7732; COA. BH. 115/5564.
178
The naval shipyard command of Otoman Empire.
46
the water. As Ferah Çark also discussed in these aforementioned documents, neft
oil had been sent to Tersane-i Amire to be used in shipbuilding.179
Another famous Ottoman author, Katip Çelebi180 described how boats and ships
were dried with shrubs and how they were caulked with the bitumen when talking
about the Ottoman Navy.181 He also described that it was a tradition to caulk ships
three times by using oil and tar in this process.182 Therefore, oil was a significant
resource in ship building industry of the Ottoman Empire.
In addition to these, archival documents of 1700s demonstrate that neft was sent
from the Cebehane-i Âmire183 to Ur, Varna, Ibrail, Sogucak, Ozi, Trabzon, Sohum
and Akkirman castles of the Empire. During the shipment, it was considered that
the utmost attention should be paid on the preservation of neft not to waste it.184
These documents also prove that neft was a valued resource to preserve in the
Empire in the 18th century.
179
Ferah Çark, ―19. Yüzyıl Osmanlı,‖ 58 and 61.
180
An Ottoman scholar, a historian and geographer in the 17th-century Ottoman Empire.
181
Cited in Ferah Çark, ―19. Yüzyıl Osmanlı,‖ 60. Orhan Şaik Gökyay, Katip Çelebi Hayatı
Kişiliği ve Eserlerinden Seçmeler, Ankara: Türkiye İş Bankası Kültür Yayınları, 1982, p. 163.
182
Orhan Şaik Gökyay, Katip Çelebi, 163.
183
One of the capitol quarries that constituted one of the central forces of the Ottoman Empire.
184
COA, C. AS., 546/22882. Also cited in Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer.
Osmanlı’da Petrol, 10 and 11. COA, C. AS, 281/11700.
47
Another primary source as shown by Çark indicates that neft was subjected to the
examination at the customs.185 This proved that oil was not only used in the
Ottoman Empire but also traded with other neighboring countries.186
Nevertheless, neft was not processed in order to obtain energy as wood and wood
coal were used until the nineteenth century.187 Similarly, no state privileges had
been granted for drilling of the state-owned oil reserves in those years yet.
However, as oil was a commercial commodity used in various fields, the legal
regulations of it were taken in the fields of trade and taxation according to şer’i
(Islamic) provisions.
In that regard, the mine operation was carried out by accumulating oil in an ―oil
pool‖, coming to the surface by itself. These operations with highly primitive
methods were sometimes given to taxpayers or sometimes operated by
government officials and sold to the public.188 For instance, one of the first
operated oil areas were in Kirkuk in this context. In 1640 during the reign of
Murad IV, the rights of the operation were given to the Neftcizade family through
a firman. The territorial borders of the field, where oil was discovered, were also
introduced on the firman.189 There is another archival document from 1772
revealing that Neftcizade family was still dominant in oil related operations in the
185
186
This shows that the Ottoman Empire regarded neft as a financial resource in trade. Ferah Çark,
―19. Yüzyıl Osmanlı,‖ 57.
187
188
189
Arzu Terzi, Bağdat-Musul'da, 160–161.
48
region.190 These documents indicate that Ottoman administriation supported the
family and gave them privileges to operate neft reserves of the region until the end
of the 18th century. It is safe to deduce that Ottomans preferred to charge trustful
local actors for the operation at the time and Neftcizades were one such family
(their family name, Neftcizade, meant sons of oil sellers).
Besides all these, there are some other studies or reports on the Ottoman oil
resources from the beginning of the19th century to the Hamidian Era. In
1854, there was an article was published in the British Geology Journal by
William Kenneth Loftus, an advisor for the commission to establish for
determining the Turkish – Iranian border. He stated that there were oil
reserves near the fortress of Van191 as it was mentioned by Evliya Çelebi.
Before Loftus, Colonel Francis Rawdon Chesney has received an order from
the British Parliament to research Euphrates River valley. Between 1835,
1836 and 1837, Colonel Chesney had examined the territory,192 and gave
detailed information on minerals and oil reserves of the region in his
report.193
190
Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer. Osmanlı’da Petrol, 8 and 9.
191
Cited in Suat Parlar, Petrol, 14. Ekrem Göksu. Türkiye’de Petrol,(İstanbul: Kağıt ve Basım
İşleri A.Ş.), 1967, p. 93.
192
Britain Parliament asked Colonel Chesney to examine the area, through Ottoman lands, in order
to look for a way to reach India in a short way. Hikmet Uluğbay, İmparatorluktan, 28–30.
193
Lieut. Colonel Chesney. 1850 ―The Expedition for the survey of the rivers Euphrates and Tigris
carried on...in the years 1835, 1836 and 1837‖ Royal Collection of Britain, (London) : Longman,
Brown, Green & Longmans (publisher) 4to : ill. Vol. 1 of 4.
https://www.royalcollection.org.uk/collection/1124374.
49
Suat Parlar briefly listed researches related to the oil resources in Ottoman
territories before 1876. According to Parlar; with an increasing interest since
the 1830's, researches had been conducted in Mosul and Baghdad provinces
of the Ottoman Empire. Between 1763 and 1767, Karsten Niebuhr traveled
around the region. In 1809, Morier discovered the resources of the
Euphrates; Rich in 1811, Ker Porter in 1818, examined the region between
Baghdad and Mosul. Existence of oil in Kirkuk was mentioned in their
books. Henry Blosse Lynch (1838—39) Aiswarth (1840), Rawlinson and
Layard (1841), William Kenneth Loftus (1849—52) and the Cemetery
Commission (1872—73) had also reported the existence of oil in the
Ottoman Empire as a secondary issue within the details of their reports.194
These reports were also important to indicate how oil was known in
Ottoman lands by foreigners before the Hamidian Era.
Ali Suavi was one of the earliest key figures to introduce awareness to the
importance of neft to the Ottomans by observing its uses in Europe. He was an
Ottoman intellectual who lived in Paris from 1867 to 1871. When he lived in
Paris, he published a newspaper, which was named as Ulûm Gazetesi (Science
Newspaper) to introduce mainly scientific developments in Europe to Ottomans.
In one Issue, he wrote some developments related with oil usage in the Europe
under the title of ―Discovery of the Last Year: Moving Steamboats with Neft Oil‖
in 1869. He stated that ―In the boilers of sea and land steambots, petrol was used
instead of coal and it is more economical and efficient…‖ and he also explained
194
50
of the applications in his following paragraphs.195 It is clear that this ―land
steamboat‖ was used to describe locomotives in Europe and oil was started to be
used as an energy resource to move vehicles in land or sea. This article proves that
Ottomans learned all these significant developments and the increasing
importance of neft oil in the world at the time before the Hanmidian Era.
3.1. 1 Mine affairs in the Ottoman Empire
Whenever a mineral had been found in Anatolia or Rumelia, a sample from the
mineral was brought to Istanbul to identify its kind and quality. The samples were
examined in Darphane. If the results of the samples were promising, the mining
process was ordered. Inhabitants and villagers near the mines were assigned as
workers from the neighborhoods. They were known as küreci196. Experienced
miners from other mines were sent to start the operations.
In addition, local governors or judges could not step into the business place. When
miners had court cases, judges ordered the mine trustees197 to act according to the
provisions of the Shari’a and not to interrupt mine operations. Mine trustees were
also not allowed to go to Istanbul to conclude or follow their operations.198
195
Ali Suavi. ―Keşfiyyât der-Sâl-i Sâbık. Neft ile Rapor Yürütmek‖. ISAM Osmanlıca Makaleler.
1869. Ulûm Gazetesi, 16, pp: 952-953.
196
Miners.
197
He was the manager of mining operations in a particular mine and appointed directly from
centre.
51
Some materials were needed for mining and exploitation, and the needs of the
miners were provided from villages around. Each village had a specific amount of
materials they were required to provide.199 In an effort to protect the mine sites
from attacks by the muggers around the mine, local Beys200 or tribes situated
around the mine regions were officially appointed to ensure the safety and
continuity of the work.201 In this regard, they were entrusted the safety of mines
and miners.
3.2 Oil in the Hamidian Era
During the last quarter of the nineteenth century, the increasing popularity of oil
around the world started to be felt in the Empire as well. During the Hamidian
Era, oil had become a required material as part of the Ottoman daily life. For
example, oil in the use of light was very common in the Empire. As Ferah Cark
mentions, oil gas was used to lighten Manastır202 streets according to the archival
document dated 1906.203 Some streets in Istanbul were lightened with lamps burnt
198
Vicdan Özdingiş. ―Osmanlı Devrinde Madenler Ve Madenlerin İşletilmesi‖ Celal Bayar Üniv.
Fen ve Edebiyat Fac. Jan, 2004, p. 4.
199
Vicdan Özdingiş, ―Osmanlı Devrinde,‖ 4.
200
Strong Lord.
201
Cited in Vicdan Özdingiş, ―Osmanlı Devrinde,‖ 4. Ahmed Refik Altınay, Osmanlı Devrinde
Türkiye Madenleri, 967–1200 (İstanbul: Devlet Matbaası, 1931), 5–8.
202
One of Ottoman cities in Macedonia province.
203
52
with neft gas in 1884.204 These documents prove that lighting was one of the
important areas for the usage of neft in this period.
It was also stated that oil was considered as a burnable resource while preserving
or storing it. As it would be dangerous to keep oil in shops and stores in an excess
amount, storehouses and warehouses were built to preserve neft gas in Istanbul
and 2.5% of the profits of the merchants would be charged for the neft gas
preserved in these storehouses, according to a document dated May 7, 1883.205
This document proves that, Ottomans were preparing an infrastructure even at that
time to preserve neft in Istanbul by building large storehouses and warehouses
around the city.
Another example of the operation related to the neft in this era was that oil was
imported from the outside into the Ottoman lands.206 In the beginning of 1890s, as
it was demanded by Nakkaş207 craftsmen, this imported oil in uncultivated form
was supposed to be allowed to pass from Ottoman customs after the treatment of
sanitary inspectors for the general benefit of the people.208 These indicate that, the
Ottoman Empire was importing Neft in those years.
204
205
Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer, Osmanlı’da Petrol,‖ 12 and 13.
206
COA, DH. MKT. 27/33. COA, HR. TH. 129/6.
207
A kind of Painter or Muralist.
208
Cited in Ferah Çark, ―19. Yüzyıl Osmanlı,‖ 64.
53
On the other hand, the oil resources of Mosul and Baghdad provinces started to
gain importance due to activities of Mithat Pasha,209 the governor of Baghdad, in
the beginning of 1870s. He made a great contribution to oil operations that were
held in Mendeli210 city of Iraq by increasing the efficiency of the operations. He
established a larger oil drilling operation in the north of the city. However, Ediger
claimed that the oil production facilities in the region turned into ruins due to lack
of attention after Mithat Pasha left the area.211 It can be safe to assume that oil
reserves of the region had not been considered as valuable as Mithat Pasha
thought by the following governor of Baghdad.
Oil in the Ottoman lands began to be seriously examined by Western states in
official secret missions after 1870s. For instance, the efforts of German experts in
Mosul and Baghdad gave positive reports about the oil potential of the region for
the first time in 1871. There was detailed information about oil operations held in
Mendeli and other places in the region within these reports. Also, this report was
sent by the Mosul Consul General of France to Paris.212 These efforts clearly show
that Germany and France were interested in the oil reserves of the region even in
1870s.
209
See Nabil Al Tikriti. ―Ottoman Iraq‖ The Journal of the Historical Society 7:2 (June 2007), pp.
201-211, p. 206.
210
For Mendeli oil resources, see: Orman Ma'âdin Mecmuası, 1. Sene, 1 Kanun-ı Evvel 1300, S.6,
p. 221–222, Cited in Özkan Keskin, ―Osmanlı Devleti’nde Yabancı Maden Mühendislerinin
İstihdamı ve Osmanlı Madenciliğine Hizmetleri‖ Yakın Dönem Türkiye Araştırmaları. 11, (2017),
79–92,Web: http://dergipark.gov.tr. P. 85.
211
212
54
Towards the end of the nineteenth century, the interest of Europeans considerably
increased in the Ottoman regions for potential oil resources.213 Since, some
technologies providing new facilities in order to utilize more petroleum were
discovered with two developments in the late 19th century. The first development
was Thomas Edison's invention of electric and incandescent bulbs in the
beginning of 1880's. The second was the discovery of gasoline-powered
engines.214 With the rapid development and use of electricity, the value of
petroleum had increased.
Accordingly, a number of secret investigations by Germans were initiated and
conducted in Ottoman lands especially in the Mesopotamia region of the Ottoman
Empire from the 1880s onwards. Some of these reports were written by Von
Tiehlman (1875), De Morgan (1892), A. F. Stahl (1893), E. Jacguert, F. R.
Maunsell and Baron Von Oppenheim. The foreign interest towards oil in the
Ottoman lands increased especially after these studies.215 It would be safe to
assume that the Ottoman authorities were informed about some of these reports.
In the earlier years of his reign, Abdulhamid II (r. 1876-1909) had knowledge
about the fact that an American, Colonel Drake, had introduced some kind of neft,
which he called petroleum by drilling the ground with some tools. He also knew
that neft surfaced to the ground in the various parts of Anatolia, the Caucasus, and
213
214
215
Necmettin Acar, ― Petrolün Stratejik Önemi,‖ 8. And see: Suat Parlar, Petrol, 85.
55
today’s Iraq,216 but it was hard to predict that this black liquid would so much in
demand as a source of energy within decades.
Foreign travelers, missionaries, and military specialists traveled to the Ottoman
Empire to examine oil rich of the Empire while covering their identities in various
costumes. These foreigners generally disguised themselves with some
archaeological excavations. Abdulhamid II appointed his agents to follow these
foreigners secretly,217 he learned that archaeologists were geologists and they
were searching and digging for oil wells.
Abdulhamid II had realized the importance of petroleum especially in Iraq as
early as 1880s. For example, Necib Melhame Pasha encouraged Abdulhamid II to
operate oil sites in Baghdad and Mosul by specifying that these operations can be
very profitable for the Ottoman treasury in 1884.218 Agop Pasha the Minister of
the Hazine-i Hassa219(this organization was more functionalized during the
Hamidian Era) conducted detailed research over the rich oil resources in Mosul
and Baghdad provinces of the Empire through some Ottoman inspectors like
Mehmed Bin Ahmed Arif Bey.220 Abdulhamid issued three decrees, placing the
oil properties of the Empire under possession of his Hazine-i Hassa.221 The
216
Suat Parlar, Petrol, 84–92.
217
İsmet Bozdağ, Sultan, 80–81; Necmettin Acar, ― Petrolün Stratejik,‖ 8.
218
Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer. Osmanlı’da Petrol, 17 and 18.
219
It was a type of Privy Purse like Civile Liste. For further information: Arzu Terzi. ―Hazine-İ
Hassa Nezareti‖, Ankara: Türk Tarih Kurumu, 2000, p. 36. It also means estates belonging to
Sultanate position.
220
Cited in Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer. Osmanlı’da Petrol, 24 to 35.
56
operation rights of the promising oil fields of the Empire were transferred from
the State Treasury to the Hazine-i Hassa so the potential oil reserves were taken
under the control of the Sultan.
Table 2: Lands Transferred to the Hazine-i Hassa in the Hamidian Era.
PROVİNCE/SANJAK ACREAGE
Baghdad 6.235.160
Basra 2.849.070
Mosul 17.770.368
Aleppo 5.586.060
Beirut 11.417.330
Syria 11.835.307
Salonika 197.149
Jeruselam 211.621
TOTAL 56.102.065
Source: Adopted from Arzu Terzi, 21222
From late 1880s223 to 1898224, the lands that were suspected of having oil reserves
were taken under control by the Ottoman authorities. Afterwards, oil and natural
gas reserves in Bagdad, Basra, Mosul, Aleppo, Beirut and Syria were discovered
221
COA, İ. HUS., 68/7. Cited in Edward Mead Earle, Turkey, 58. See also; Hikmet Uluğbay,
İmparatorluktan, 47.
222
Arzu Terzi, Bağdat-Musul'da, 21.
223
COA. İ. D. Nr. 87807. 6 Feb 1889. This archival document is a firman that allows oil
concessions in Mosul to be granted to the Sultan’s Privy Purse. In the document, it was said that
this concession was granted as oil gas emerged in the region. For transciption look at, Demir,
İsmet, et al. Musul-Kerkük ile ilgili arşiv belgeleri,(1526–1919. Haz. İ.Demir... [v.b.];Tran.
N.İlemin, N.Büyükkırcalı. Ankara: T.C.Başbakanlık Devlet Arşivleri Gn. Mdl., 1993, 1993, p. 191.
224
COA. BEO. Nr. 89875.
57
in the following years. It can be noted that these lands were particularly chosen by
the Sultan and Agop Pasha because of the experience of the Empire in Neft useage
in aforementioned various fields for centuries.
After Abdulhamid II had the rights of the neft operations as a monopolistic
occupation, he appointed engineers in charge of researching underground riches of
the region.225 For example, in the beginning of 1901, Paul Graskopf
(Ghrostopnine), one of the engineers working for Hazine-i Hassa conducted a
research in the vicinity of Mosul, Kirkuk and Baghdad.226 After he made
excaminations throughout these provinces, he prepared a report.
Graskopf’s report indicated that the region has serious oil reserves: ―I have visited
several oil wells all over the world, both before and after exploitation,‖227 also
noted ―but none of these have proved to be so rich. . . . I have never seen the like
as yet.‖228 The existing operations were not professional according to him but he
said, ―The neft rich between the Eupharates and the tigris would be the most
excessive (ziyade in Ottoman Turkish) in terms of petroleum reserves in the
world.‖229 After his examinations, Graskopf traveled to Germany for submitting a
detailed report to the German government about the oil resources of the region.230
This situation disturbed especially Ohannes Kazasyan the Minister of Hazine-i
225
Hikmet Uluğbay, İmparatorluktan, 40. And, Arzu Terzi, Bağdat-Musul'da, 87–89.
226
Edwin Black, Banking on Baghdad, 117.
227
Arzu Terzi, Bağdat-Musul'da, 21. Also, see Volkan Ş. Ediger, Osmanlı’da Neft, 205–207.
228
Cited in Arzu Terzi, Bağdat-Musul'da, 21. And see; Volkan Ş. Ediger, Osmanlı’da Neft, 205–
207.
229
Cited in Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer. Osmanlı’da Petrol, 148 to 153.
COA, HH. THR, 239/60.
230
İlber Ortaylı, ―Abdülhamid,‖ 133.
58
Hassa at the time. Ohannes Pasha wrote a report addressing to the Sultan. He
stated that Paul Graskopf did not work properly; the Empire could not provide
enough benefit from him due to his incongruous acts to his task. Pasha also
underlined that Graskopf was not a good engineer to be employed in Hazine-i
Hassa and demanded that his contract should have not been renewed by saying
that Graskopf started to act for his interests.231 This document proves that
Graskopf’s correspondence with Germans apparently displeased the Ottoman
authorities.
Paul Graskopf’s report caused the German government to develop an interest in
the Mesopotamian oil reserves. He compared the quality and abundance of oil
reserves in Kirkuk with oil reserves of Baku:
There are rich oil resources around 15 kilometers in north of Kirkuk.

The quantity and quality of petroleum, which are extracted and
cleaned in primitive forms, is not lower than Baku oil resources. It is
possible to make effective use of these resources with the railways,
which will be built.232
Graskopf’s report caused Germany to start getting serious about Ottoman oil.
Accordingly, Deutsche Bank as a German Enterprise would try to obtain the
privilege for exploring and exploiting oil in the region. Nevertheless, it was also
mentioned in the report that the oil reserves in Iskenderun, Aleppo, Birecik, Urfa,
Siverek and Diyarbakir were not as good as Mesopotamian reserves.233
Abdulhamid II continued to hire experts to investigate the Ottoman oil resources.
As a result of these efforts, a French mining engineer, Emile Jakraz, was
231
232
İlber Ortaylı, ―Abdülhamid,‖ 93. (Translated).
233
59
appointed as chief engineer of the Ministry of Hazine-i Hassa.234 He started to
make his examinations in Baghdad region.235After his studies in Baghdad, he
went to Mosul and Kirkuk provinces; he visited all oil reserves one by one
through the region. He kept statistics and made regulatory precautions in order to
operate neft resources effectively.236 As a result of these studies, Jakraz made
many determinations, advices and kept lots of statistics for the Hazine-i Hassa. He
emphasized that oil resources in Ottoman Iraq seemed to be very rich and of good
quality and that they should be operated carefully.237 Emile Jakraz’s reports were
encouraging for further oil operations in the Empire.
On the other hand, Calouste Sarkis Gulbenkian238 was assigned by the Hazine-i
Hassa to make a comprehensive report on the oil prospects of Mosul and Baghdad
Provinces around 1893–4.239 He was a new graduated petroleum engineer and his
father had developed an import trade for neft from Baku. He prepared an
examination paper on the Mosul oil fields. The contact between Calouste
Gulbenkian and the Sultan was Agop Pasha, the minister of the Hazine-i Hassa.
Agop Pasha was close friend of Gulbenkian’s father, and Selim Efendi who was
the Turkish state minister of mines at the time. According to Edwin Black’s study,
they jointly wanted Gulbenkian to make a comprehensive search of the oil
234
Hikmet Uluğbay, İmparatorluktan, 18. And see Arzu Terzi, Bağdat-Musul'da, 143.
235
236
237
The report of Jakraz on Mosul oil sources cited in Arzu Terzi, Bağdat-Musul'da, 143–153.
238
Edwin Black, Banking on Baghdad, 101-103.
239
Gökhan Çetinsaya, Otoman Administration, 39.
60
prospects for today’s Iraq. In 1894–5, Gulbenkian rapidly prepared a report for the
region.240
While utilizing previous reports about the potential oil resources of the area,
Sarkis Gulbenkian presented the examination paper without himself traveling to
the region (He would gain an enormous wealth from oil concessions of the
region). Although Gulbenkian himself never went to the region, he stated that:
I elaborated a comprehensive report, which was nothing else than a

compilation of various travelers’ books . . . and particularly what I
heard from different engineers of the Anatolia Railway who had been
in Mesopotamia.241
Gulbenkian prepared a report advising that Mesopotamia might offer great oil
deposits.242 Abdulhamid II welcomed the news. In an effort to prevent foreign
pressure for concession demands, he had already begun quietly transferring many
Mesopotamian lands into his Hazine-i Hassa. The first transfer attempt of these
lands was on April 8, 1889, in preparation for a railway proposal. It covered ―the
whole province of Mosul.‖ After Gulbenkian’s promising report, the Sultan
transferred additional parts of Mesopotamian lands to the Hazine-i Hassa. Palace
officials sent telegrams to the provincial governors of the lands the Sultan was
securing through his Privy Purse.243 Prospecting activities for oil in the Empire as
an important article was issued in the new budget program of the Empire in
240
Edwin Black, Banking on Baghdad…, 103.
241
242
The original copy of Gulbenkian’s report could not be reached in this research. However, there
is a copy of his another report on Ottoman oil laws and applications in Ottoman Empiral Archives.
For further information, see: COA. HR. SFR.3 654/102.
243
Edwin Black, Banking on Baghdad, 103–104.
61
1902.244 This indicates that potential oil revenues became a current subject of
budget programs of the Ottoman Empire
Besides these, the efforts for improving/reforming neft resources of the Empire
were seen after the potential reserves were included in the Sultan's personal estate.
In that regard, the investigations and the examinations had been increasingly made
for the detection of deposits to utilize them efficiently. The Ottomans aimed to
find or reach experts and new methods providing the best efficiency in oil work
for the welfare of the state.245
3.3 First Efforts to Discover and Operate Petroleum
Petroleum explorations in the Ottoman Empire started at the end of the 19th
century. These efforts were confirmed to taking concessions and obtaining or
transferring licenses in the Empire.246 These activities were not usually finalized
due to the insufficient monetary returns of these trials.247 The early oil related
operations in the Empire were costly.
The territory of Çengen in the vicinity of Iskenderun was the first place where
drillings for oil exploration were made in the Ottoman Empire. A foreign firm
244
This document was also cited in Behice Tezçakar, ―Erzurum- Pülk,‖ 28. COA, ZB. 45/33.
245
246
Kemal Lokman ―Memleketimizde‖.
247
Ferah Çark, ―19. Yüzyıl,‖ 65.
62
conducted about ten drillings but only natural gas was found in the region in
1887.248 This initial attempt was disappointing for the firm. Further explorations
led to the discovery of oil in the Çengen village (today known as Kepirce) in the
Kabaev district of Iskenderun which was a district of the province of Aleppo at
the time. Then, some oil samples from these drillings sent to Istanbul and the
precise results were obtained on July 17, 1887 by the chemist Moreau. The result
of the tests was positive.249 As a result of that, a new question emerged who
would operate this field?
According to the Ottoman Archives, the first right to drill the oil which discovered
in Çengen village was given to Ahmed Necati Efendi in 1889.250 According to an
archival document dated 12 June 1889, these oil reserves were discovered by
Ahmed Necati Efendi,251one of the military contractors in Iskenderun.252 He asked
to build the necessary plants for the liquidation of the oil resources and for
permission to lay the pipelines to transport the oil.253 Ahmed Necati was claiming
that he was the explorer of the resource, so he applied for the rights to operate
these reserves.
248
Cited in, Behice Tezçakar, ―Erzurum- Pülk,‖ 31. Filiz Tutar, Petrolün Bir.
249
Cevat E. Taşman, ― Petrolün Türkiye’de Tarihçesi,‖ 14. See: İdris Bostan ―Osmanlı
Topraklarında,‖ 129.
250
Kemal Lokman. ―Memleketimizde‖. For further information, see: İdris Bostan ―Osmanlı
Topraklarında,‖ 129–130.
251
252
Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer, Osmanlı’da Petrol, 44 and 45.
253
63
Since the mining laws in terms of granting oil concessions was not previously
regulated in the Ottoman Empire, this was thoroughly discussed by the competent
authorities in accordance with the regulations of the present Maâdin Nizâmnâmesi
(The mine regulation in Otoman Empire) of 1968.254 The Administration of Forest
and Mine decided to prepare the conditions and conventions of the oil operation
and administration for Çengen oil reserves and the same authority also suggested
that the issue should be discussed in the institutions such as Şûrâ-yı Devlet (The
Council of State) and Meclis-i Ali-i Vukela.255 While Ahmed Necati Efendi was
continuing the work for the operation of the oil resources, the contract256 was
prepared in accordance with the new mine regulation of 1887. This indicates that
the explored oil resource in Iskenderun directly led to Ottoman administration to
prepare a new mine regulation to fulfill the need.
The contract was published on March 23 of 1889 and covered the limits of the
fields where oil would be drilled, the amount of taxes to be paid, the amount and
technique of production to be used. In addition, this publication specified that the
activity areas should be at least 150 meters away from some structures and areas
such as waterways, railways, and fountains. There were also eleven articles within
the contract.257 Eventually, the oil operation rights for the vicinity of Çengen were
granted to Ahmed Necati Efendi for 75 years with the contract also including
254
Düstur Tertip 1, Vol 2, p. 318–337. See, Volkan Ş. Ediger, Osmanlı’da Neft, 400.
255
Meclis-i Vukela is the parliament of deputies, discussing on important issues concerning the
government's internal and external politics.
256
257
This contract was examined in the Council of state on 3 May 1889. İdris Bostan ―Osmanlı
Topraklarında,‖ 130.
64
articles, 61, 62, 63 and 65 of the Mines Regulation of 1869.258 It was also decided
on November 10 1893 that; no custom duties would be taken for the construction
equipment to be used in this region, which would be brought from European
countries.259
While the permits for the oil operation in Çengen were finalized, Kostaki
Yorgiyadis who was an Ottoman mine searcher, applied to the Sadâret office on
behalf of a mining explorer group. He asked for the rights of the oil operation to
be given to him. He stated that he was the first person to discover the asbestos and
petroleum mines around Iskenderun when he presented his request paper to the
Grand Vizier Kamil Pasha on May 19 and June 6 1889; he had no results due to
some difficulties in his application.260 His trials gave no fruits.
In the following years, the rights for oil operation in Iskenderun were passed on to
other individuals and companies. It was known that seven and a half months after
the oil concession was given to Ahmed Necati Efendi, he handed his right to a
merchant Hasan Tahsin Efendi.261 The Ministry of the Finance had completed the
transfer on 26 January 1890.262 About a year later, Hasan Tahsin Efendi wanted to
transfer the right of the oil operation to the newly established Iskenderun Oil
258
This contract was examined in the Council of state on 3 May 1889. The operator will pay a total
of 72,932.5 kurus every year to the Treasury for the land allocated at the beginning of March. If
another mineral is discovered in this area, the operator should have applied again to the state. İdris
Bostan ―Osmanlı Topraklarında,‖ 130–131.
259
COA, İ. RSM, 2/20. This document was published in Abdurrahim Fehimi Aydın and Ahmet
Zeki İzgöer, Osmanlı’da Petrol, 17 and 18..
260
İdris Bostan ―Osmanlı Topraklarında,‖ 132.
261
262
İdris Bostan ―Osmanlı Topraklarında,‖ 131.
65
Company as German-British firm. In fact, Nazif Pasha the Minister of Finance of
the Empire sent a paper to the Grand Vizier on 3 June 1891 about this transfer.
This paper was about the transfer of the oil concession rights of the region from
Hasan Tahsin Efendi to the representative of this company, Monsieur Frans.263
Thus, the Ottoman authorities led Hasan Tahsin Efendi to transfer Oil concession
rights to a foreign-organized enterprise. The reason behind the permission can be
that the oil resources of the region did not have abundant potential as an oil field
for Ottoman administration.
Although it is not known for sure, some unsuccessful results were obtained from
10 to 15 drillings made by the German-British firm in the region. However, the
operation stopped because the expected results could not be achieved through the
drilled wells.264 This oil privilege explored and operated in the Iskenderun region
was permanently abolished on January 15 1916, twenty-six years later.265 In this
way, the story of Iskenderun oil concessions and operations ended for the
Ottoman Empire.
263
Volkan Ş. Ediger, Osmanlı’da Neft, 136. See: İdris Bostan ―Osmanlı Topraklarında,‖132.
264
Cevat E. Taşman, ―Petrolün‖, 15.
265
Behice Tezçakar, ―Erzurum- Pülk Oil,‖ 32.
66
CHAPTER IV
OIL CONCESSIONS IN THE HAMIDIAN ERA
In this chapter, I firstly discuss the Ottoman oil concessions, concessionaries,
concession places to show the Ottoman trials to operate oil in the Empire and
Ottoman mineral regulations during the Hamidian Era. After these, I discuss the
increasing foreign interest over Ottoman oil resources by specifically focusing on
the Anatolian Railway Companies’ oil concessions and 1904 Agreement between
Germany and the Ottoman Empire. These subjects were essential to build my
argument. As a key section of my study, I show the perception and strategies of
Abdulhamid II for Ottoman oil resources by evaluating the Sultan’s famous
―balanced policy‖ regarding the Ottoman oil concessions as bargaining chips or
instruments in international relations of the Ottoman Empire.
My argument is that Abdulhamid II knew the oil reserves of the Empire were
important for Europeans and he developed an oil policy within the scope of his
―balanced policy‖ against the possible great power interventions to not lose his
control over these valuable reserves. Therefore, he manipulated Europeans’
aspirations through this policy especially by using German involvement to the
Empire. The Sultan tried to utilise the Ottoman oil reserves through concessions
as leverage for Ottoman interests.
67
4.1 The Ottoman Statesmen and Early Interests for Oil Concessions
The enormous potential of oil within the regions of the Ottoman Empire was
discovered in the late nineteenth century. Abdulhamid II added the potential oil
resources, all over the Memalik-i Mahruse,266 into his own property, Ottoman
Hazine-i Hassa.267 Many of these regions were in relatively large and fertile
settlements in the Mesopotamian dominions such as Kirkuk. When the Sultan got
aware of the importance of these resources, he naturally tried to benefit from the
oil resources. In that regard, the Ottoman oil concessions were given to the
Ottoman subjects for the first time.268 These concessions were usually granted to
Ottoman statesmen or entrepreneurs who were closely related to the Ottoman
state.
Çengen village, in the vicinity of Iskenderun, was the first location to be assumed
as a promising area for oil drilling in the Empire as mentioned in the previous
chapter. A foreign firm conducted some drillings in 1887 and oil was discovered
there.269 The first right to drill for oil which discovered in Çengen village was
given to Ahmed Necati Efendi in 1889.270 He was granted to build necessary
plants for the liquidation of the oil resources and; for permission to lay pipelines
266
All lands under the governance of the Sultan.
267
268
269
Also, it is claimed that Ahmet Necati Efendi himself discovered oil sources in the region. Cited
in Behice Tezçakar, ―Erzurum- Pülk,‖ 31. Filiz Tutar, Petrolün Bir, 28.
270
There are two maps were prepared for this oil concession granted to Ahmed Necati Efendi.
COA. ŞD. 321/36. See also Kemal Lokman, ―Memleketimizde‖.
68
to transport the oil from the area.271 Ahmed Necati’s operation right in order to
drill for oil resources in this village was the first known official Ottoman oil
concession.
In addition to Iskenderun, the archeological data showed that neft was emerging
from the underground in the Van region. Oil in the region was used for various
purposes and it was known by Ottoman authorities.272 Accordingly, some reports
indicating that there were oil reserves in Van, which were submitted to Istanbul
towards the end of the 19th century.273 It was also known that oil was found in the
Kürzot area of Van's Bargirl region. In addition, Ishakpaşazade Tayfur Pasha in
this region operated the crude oil during the Russian warfare of 1877-78.274
The first oil concession of the region was given to Armenian Nikoghos
Tokmakyan, but he could not operate the oil resources. Despite the intense efforts
of Tokmakyan, he had to leave the region as he could not afford the expenses.275
Any professional drillings for production of oil was not carried out in the region
until Tokmakyan’s efforts.
271
Kemal Lokman, ―Memleketimizde,‖ 134.
272
Evliya Çelebi. Seyahatname, 253. See Hikmet Uluğbay, İmparatorluktan., 5.
273
274
Volkan Ş. Ediger, Osmanlı’da Neft,142.
275
COA, Y.PRK. UM, 32/75; COA, YEE. 150/33. These documents were cited in Volkan Ş.
Ediger, Osmanlı’da Neft, 142.
69
After Tokmakyan’s failed attempt, Galip Pasha276 the mayor of Van at the time
tried to obtain for Van oil concessions. Galip Pasha actually had experience in
obtaining some other mine concessions in the region277 and he got in contact with
Ahmet Cevat Pasha278 in 1895 for this purpose. He sent letters to Istanbul; he
described the oil mines of Kürzot by praising the resources and applied to obtain
concessions.279 However, Galip Pasha could not achieve his purpose due to the
replacement of the Grand Vizier.280 Therefore, these trials to obtain oil concession
in Van by these Ottoman statesmen could not be finalized and oil operation rights
of the area transferred to the Hazine-i Hassa in those years. Afterwards, oil
concessions of the region would be granted to Müşir Fuad Pasha in 1914.281
In the meantime, some drillings were carried out in Şarköy located in the Gallipoli
Sanjak of Edirne province. As a result of these practices, coal and petroleum
mines had been discovered in the empty seaside area near Palatonoz, Kocaali,
Gölcek and Eksamil villages of Şarköy.282 Since the day Grand Vizier Halil Rifat
Pasha283 had started his assignment in the imperial court, he was closely interested
in the oil concessions of the region with the encouragement of his son Cavit
276
The son of Tayfur Pasha.
277
A mineral that called as Zırnıh or zırnık; COA, Y.PRK. AZJ. 46/138.
278
The grand vizier of the Empire at the time.
279
These documents were discussed in detail by Ediger, Volkan Ş. Ediger, Osmanlı’da Neft, 148–
152. COA, Y.PRK. OMZ., 1/81. And; COA, YEE., 132/3.
280
281
COA. DVN. MKL. 54/29.
282
COA, BEO. 911/68280. This document was cited in Ferah Çark, ―19. Yüzyıl Osmanlı,‖ 68.
283
Halil Rifat Pasha served between November 7, 1895 and November 9, 1901.
70
Bey.284 This interest resulted in success and the license for the petroleum
operation of the region was granted to Halil Rifat Pasha for 99 years by
Abdulhamid II in May 1897.285 Halil Rifat Pasha conducted a work to open a well
in the vicinity of Ganos in August 1898 and made significant drilling work.
However, the efficient resources had not been achieved as a result of these trials,
which continued more than five months.286 In addition to that, an oil concession
was granted to the Hazine-i Hassa for oil, lignite and tar reserves of Ferecik town
of Edirne in 1905.287
Oil was explored in the Pülk village of Tercan province of Erzurum in 1880s.
Ahmed Celaleddin Pasha, who was Circassian origin, was appointed to select the
Pülk concessionaires by Abdulhamid II.288 Firstly, Sarıca Osman Bey applied for
the oil concession license of the region. Volkan Ediger claimed that Sarıca Osman
Bey operated these oil resources by a license from 1887 to 1888.289 However, it is
known that, he sold or transferred his concession license to another person named
as Garvişof290 for drilling wells and exploring oil in the region.291 Rıza Pasha, the
commander-in chief of the General Staff, at the time sent an evaluation letter to
284
285
These document was cited in in Volkan Ş. Ediger, Osmanlı’da Neft, 155. COA, Y.A.HUS.,
517/114.
286
287
Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer. Osmanlı’da Petrol, 236 and 37. COA.
288
289
290
He is an Armenian who was a Russian subject from Tiflis. See: Deniz Akpınar and M. Samet
Altınbilek. ―Pülk-Balıklı,‖ 38.
291
This document was also cited in Behice Tezçakar, ―Erzurum- Pülk,‖ as COA, YPRK. OMZ
2/22–3, 15/ S /1316, 5 July 1898.
71
the Council of the State about this transfer because he was not comfortable with
the oil operation by a foreigner in the region. Rıza Pasha reported that Sarıca
Murad Osman Bey, who applied to have a new concession license for the area, did
not extract oil.292 At the end, the request for the concession submitted by Sarıca
Murad Osman Bey was rejected and the transfer was cancelled on 27 November
1889.293 This demonstrates that Ottoman administration was careful about the
foreign activities in oil related issues of the region.
In addition to Sarıca Murad Osman Bey’s application, Çulhazade brothers from
Trabzon asked a search license for the same mine with the encouragement of
fourth army.294 As underground resources and routes in this region were
significant for the fourth army, the concession license was tried to be granted
while paying attention to the identities of people (whether Ottoman subjects or
not). Therefore, Sarıca Murad Osman Bey was preffered instead of Garvishof who
was a Russian. However, this permission did not remain long and the oil
concessions of the region had been canceled in a short time.295 This reveals that
the fourth army as a territorial power in the Pülk oil concessions of the Empire
292
These documents cited in Behice Tezçakar, ―Erzurum- Pülk,‖ 67. COA, YPRK. OMZ 2/22–3,
15/ S /1316, 5 July 1898; COA, YPRK. OMZ 2/22–3, 15/ S /1316, 5 July 1898. : COA, YPRK.
OMZ 2/22–3, 15/ S /1316, 5 July 1898.
293
294
The Army commanders like Sakir Pasha thougt that Garvişof was a kind of spy who was
carrying out regional mapping activities. In the ongoing process, there was an Armenian issue in
the region and it can be emphasized that of the identity of the people to be granted concession
rights was sensitive situation for the Army officers. In a mean, they concerned about foreigners
that can be spy and subjects that can use this concession rights against Ottoman benefits. For
detailed information, see Behice Tezçakar, ―Erzurum- Pülk,‖ COA, YPRK. O MZ 2/22-1.
295
.
72
was one of the factors for a while not to grant oil concession of the region to a
foreigner.
There was increasing interaction between Germany and the Ottoman Empire in
those years. Accordingly, a German subject named Carl Reiser, who was another
applicant for the Pülk concession, contacted with Ahmed Celaleddin Pasha to
obtain the concession.296 The Pasha through the authorization of the Sultan had
decided to grant the oil concession to Carl Raiser.297 Therefore, a foreigner
obtained a neft concession in the region due to the changing current political
climate. In addition, an oil concession from the region was granted to Ahmed
Celaleddin Pasha.298
Besides Anatolian oil resources, the right of operation and utilization of oil
reserves in Kirkuk, Baghdad and Mosul were given to the landowners and Tımar
owners before Tanzimat Era.299 For example, Kirkuk oil concession in a classical
concession structure was given to the Neftcizade family during the reign of Sultan
Murad IV through an imperial edict of 1640.300 Also, it was said that the
―Babagurgur‖ Neft mines in Kirkuk was privileged only for the preservation of
Neftcizade family in some archival documents of the late 18th century.301
296
Cited in Behice Tezçakar, ―Erzurum- Pülk,‖ 43. COA, Y.PRK. OMZ, 2/22–3.
297
Cited in Deniz Akpınar, and M. Samet Altınbilek. ―Pülk-Balıklı,‖ 38. COA, ŞD, 3068–63.
298
COA. Y. RES. 94/75.
299
The era was a reform period from 1839 to 1876 under the purpose of modernization,
consolidation of the social and political instutions of the Empire. See also Arzu Terzi, Bağdat-
Musul'da, 87, 137 and 141.
300
Volkan Ş. Ediger, Osmanlı’da Neft,10.
73
However, Mithad Pasha, governor of Baghdad in 1870s, started oil drillings in the
province.302 It can be safe to assume that there was a historical progress in the
operations of Mesopotamian oil resources of the Empire in particular.
Abdulhamid II had realized the importance of petroleum especially in Iraq as
early as 1880s. The sultan issued three decrees placing the oil lands in the
possession of the Hazine-i Hassa; especially several lands in the the Mesopotamia
region of the Empire.303 In the following years of this transaction, Amasyan
Efendi and Hristidi Efendi applied for oil concessions in Mosul. Their application
had been found inconclusive and they had not received any privileges.304 Another
application was made by Nemlizade Hasan Tahsin305 for the concession of the
same resource. However, Tahsin Efendi and Hazine-i Hassa could not reach an
agreement for the borders of the requested lands. Therefore, Hazine-i Hassa did
not give the concession right to him.306 These rejections by Hazine-i Hassa may
show that the Ottoman administration intentionally did not finalize the oil
concession contracts of the region because Abdulhamid II’s and Privy Purse’s
researches on the oil resources of the Mosul and Baghdad Provinces were
continuing in the same years. For example, lots of ground around Baghdad was
taken to be examined in 1890s.
301
302
303
Edward Mead Earle, Turkey, 58.
304
COA, HH.THR., nr. 233/52, lef 3. This document was cited in Arzu Terzi, Bağdat-Musul'da.
305
COA. Y. RES. 115/21. And; COA. İ. OM. 8/22. Nemlizade Hasan Tahsin Efendi was interested
in mine concessions. For example, He obtained chrome concessions of Makri region of Aydın.
306
COA, BEO., nr. 66270. ; COA, BEO., nr. 73808. These documents were cited in Arzu Terzi,
Bağdat-Musul'da...,180–183.
74
As a result of these researches, rich oil reserves were encountered and identified
in the province of Baghdad. On September 19, 1898, with another imperial edict,
the privilege of the oil reserves in the region was included in the property of the
Sultan.307 After these developments, Nemlizade Hasan Tahsin Efendi applied for
the oil concession of Bagdad oil resources in 1898.308 Although it is not certain, it
was claimed that he received concession of the oil reserves of Baghdad and Basra
in the same year.309 This claim can be verified according to some archival
documents.310
There were other foreign entrepreneurs seeking oil concessions in Ottoman lands
besides Nikoghos Tokmakyan. The most known of these entrepreneurs was M. G.
Borssevains.311 He wanted to obtain oil concessions of Mosul, Diyarbakir, Basra,
Baghdad and Van though a petition in 1894 by paying a few million Ottoman
kurus to the treasury. For this, Borssevains wanted the help of Grand vizier
Ahmed Cevat Pasha.312 Another entrepreneur was Lopez Sabuncu who requested
the privilege for searching oil in Ottoman lands by sending an application to the
Grand vizier. Sabuncu submitted his concession request for possible Black Sea oil
resources and; stated some complaints on his previously rejected proposals for an
307
308
See Arzu Terzi, Bağdat-Musul'da, 104.
309
Ferah Çark, ―19. Yüzyıl Osmanlı‖, 75.
310
COA. BEO. 1159/86899 and COA. ŞD. 1447/30.
311
The Dutch Banker from Amsterdam.
312
75
earlier concession request.313 However, these attempts by foreign entrepreneurs
generally remained inconclusive during the Hamidian era.
Table 3: Important Oil Concessionaires in the Hamidian Era
Place Concessionaire Year of Year of

Application Granting
Iskenderun Ahmet Necati 1889 1889
Efendi
Iskenderun Hasan Tahsin 1890 1890
Efendi
Iskenderun Monsieur Frans on 1891 1891
behalf of the
Iskenderun Oil
Company
Edirne Kaymakam (the Not found 1893
(Adrianople)- Governor of
Şarköy district) at that
time
Edirne Grand Vizier Halil 1897 1897
(Adrianople) - Rıfat Pasha
Şarköy
Van (Kurzon) Nikoghos Not found In beginning
Tokmakyan of 1890s
Van (Kurzon) Mayor Galip Pasha 1895 1895, not
finalized
Erzurum (Pulk) Sarıca Osman Bey 1887 Between188
7–1889
Erzurum (Pulk) Çulhazade family 1898 1898
from Trabizond
Erzurum (Pulk) German Carl 1898 1898
Raiser
Erzurum Ahmed 1898 1898
Celaledddin Pasha
Erzurum (Pulk) The Fourth 1905 Probably
Army’s attempt could not be
finalized
Tekfurdag VakımPashazade 1905 Unknown
Tahir Bey and its
cancellation
Tekfurdag Tayfur Bey Not found 1909
313
COA, Y.PRK. TKM 29/26, 10/M/1311, 24 July1893. Also, cited in Behice Tezçakar,
―Erzurum- Pülk,‖ 41.
76
Table 3 (Continued).
Fersan Island (in Turhan Pahsa Not found 1902 or1903

the province of
Hudayda, in
Yemen):
Karamürsel Mihran Şirinyan Not found 1893
Efendi
Adana Atnas Taripani Not found 1906
Baghdad Nemlizade Hasan 1898 1899
Tahsin Efendi
Ottoman oil regions are also indicated in the table in order to show oil
concessionaires and applicants for Ottoman oil concessions; or the privileged
places for the oil concessions in the Hamidian era (1876 to 1909).314 When we
examine the table, it can be seen that the oil concessionaries were selected or
appointed from among the Ottoman subjects especially for oil lands that had rich
reserves on purpose. If we consider the rejected applications like Borssevains by
the Sultanate, it is possible to conclude that the foreign concessionaries were not
preferred for a grant because Abdulhamid II wanted to keep these reserves from
foreign aspirations while trying to operate the oil sites through people who were
close to him.
Besides these concession attempts, some establishments like the Anatolian
Railway Company and foreign states, Germany, Britain and France desired to
obtain oil concessions. Naturally, these caused an international struggle and
314
These list of concessions adopted from researches of Abdurrahim Fehimi Aydın and Ahmet
Zeki İzgöer, Osmanlı’da Petrol. Volkan Ş. Ediger, Osmanlı’da Neft. and Behice Tezçakar,
―Erzurum- Pülk Oil,‖ 41–44. And; COA. BEO. 1159/86899; COA, BEO, 1169/87648; COA. Y.
RES. 94/75.
77
rivalries towards the Ottoman resources.315 The following sections will discuss
these rivaliries further.
Consequently, the Ottoman Empire got around ten applications each year for
permission to oil search between 1870 and 1898. After 1898, applications for such
permissions reached to an average of 139 per year.316 In the Hamidian era,
Europeans as individual entrepreneurs or states obtained mining and oil
concessions. Some foreigners applied for these concessions alone, and some others
entered into partnership with Ottoman subjects.317
4.2. Mine Regulations and the Procedures for Obtaining Oil Concessions
During the classical age, the Ottoman mines were operated based on emaneten318,
iltizamen319 and ihale320 methods as required in self-sufficient financial structure
of the Empire. These methods changed from time to time and region to region.321
During the second half of the nineteenth century, Ottoman mines became center of
315
See Marian Kent. Oil and Empire.
316
Behice Tezçakar, ―Erzurum- Pülk Oil,‖ 38.
317
Cited in Behice Tezçakar, ―Erzurum- Pülk,‖ 38. Donald Quataert ―19. Yüzyılda,‖ 914.
318
An officer in the name of Mine Emin appointed by the state ruled the mine for a certain fee.
319
The state gave taxation rights of mine to the highest bidders (mültezim) who collect taxes from
mine operators. He keeps a part of the tax revenue for himself.
320
It is a kind of auction. The state gives the right of mine operation to whom provides the most
suitable conditions among the many tenderers.
321
Rhoads, Murphey. ―Ma’din: Mineral Exploitation in the Ottoman Empire‖, The Encyclopedia
of Islam, New Edition, Vol. V, Leiden 1986, 973–985and 974.
78
attraction for local and foreign investors. The state needed to prepare new
regulations in order to meet demands. Accordingly, Ottoman authorities prepared
the first mine regulation in 1861 and renewed it with new laws in 1869, 1887 and
1906 in order to make improvements and necessary new legal adjustments.322
These regulations were generally related in the mine concessions, relavant taxes,
concession procedures and concessionaries.
A special commission was set up in 1856 to meet two days in a week at the
Ministry of Hazine-i Hassa in order to prepare a comprehensive regulation
describing all the stages of mine production.323 The work took longer time than
expected because upgrades and reformations were changed in the process of the
regulation. The study of the Commission was completed with a draft that contains
six sections and sixty articles.324 However, its final version was consisted of five
sections and fifty-four articles. Thus, the first mining regulation (Nizamnâme) of
the Ottoman Empire took its final form and entered into force on May 28, 1861.325
The 1861 Nizamnâme divides the mines into two categories. The first group was
named as Mevadd-ı Madeniye and the second group was named as Mevadd-ı
Gayr-ı Madeniye. The first group included mines such as gold, silver, lead, copper,
tin, nickel, mercury, zinc, manganese, chromium, sulfur, cobalt, sandpaper, alum
and coal. The second group contained stone varieties used in the construction of
322
Özkan Keskin, ―Osmanlı Devleti’nde Maden,‖125.
323
Fahrettin Tızlak, ―Osmanlı Maden,‖ 79–80.
324
COA. DUİT. Nr.21/2–1. This document cited in Özkan Keskin, ―Osmanlı Devleti’nde Maden,‖
128..
325
For further Information: Cited in Özkan Keskin, ―Osmanlı Devleti’nde Maden,‖ 127–130.
Fahrettin Tızlak. ―Osmanlı Maden,‖ 75–81. COA. İ. MVL. Nr.20152.
79
marble, lighter and gypsum, lime, porcelain soil, sand, clay, meerschaum.326 Oil-
Neft was not mentioned in the mine regulation of 1861.
The first eleven articles of the regulation described mine exploration and
exploration work. According to this, a person would be able to make a mining
search without permission and license in his own property. On the other hand, it
was ruled that those who are interested in the land of the state properties had to
obtain a license from the state. The duration of the search permits was limited to
two years.327 Another notable article was thirteenth article of the regulation. In the
article, it was stated that the Ottoman subjects had the opportunity to apply for
concessions alone or in partnership. Therefore, it implicitly meant that foreigners
could obtain a mine concession as shareholders in partnership with the Ottoman
subjects.328 This was one of the most significant points of the 1861 Mining
regulation,329 because for the first time foreigners could get involved in mining
tenders even though they could be just shareholders. However, the right to buy a
property in the Ottoman Empire by foreigners would be recognized in 1867. In this
way, the principle that the citizens of foreign countries could operate mines in the
Empire was approved.330 This principle was crucial in terms of foreign mine
326
327
It was also explained that those who would search for mines required to specify provinces and
sanjacs in their application petition. They had to note that they would compensate damages that
might occur during the exploration excavations. COA. DUİT. Nr.21/2–1. Articles 1 to 11.
328
Those who demanded concessions needed to prove that they have enough financial power to
pay taxes and to compensate possible indemnification and to provide surety. Thus, when the estate
wanted to guarantee their receivables, it was also wanted to take the initiative of some enthusiasts
who were not interested in mining and were seeking benefits from the state by taking advantage of
legal gaps. Cited in, for further information look at, Özkan Keskin, ―Osmanlı Devleti’nde,‖128–
129. COA. DUİT. Nr.21/2–1 Lef 3. Article 13
329
Prior to this date, the general tendency of the state was not to grant mine concessions to
foreigners.
80
investors, and foreigners were implicitly allowed to buy lands in the Ottoman
Empire.
As for taxing regulation in the 1861 Nizamnâme, one kuruş for one acreage in
return for allocated mine areas was required. There was a payment called as
Ferman Harcı (The edict fee) between 1000–1500 kuruş as a one-time payment
when the concession had been formalized by the Palace.331 Another thing drawn
attention in the regulation was that the duration of the granted privileges was not
determined precisely.332 In this regard, the time limit was not specified by denoting
that ―bir müddet-i münâsibe-i imtiyaziyeyle‖.333 This shows that Ottoman
authorities at that time did not consider putting the time limit necessary. The mine
regulation of 1861 had been used for almost eight years. However, the experiences
obtained in mining operations with this regulation led the Ottomans to prepare a
new regulation. These documents also determined the conditions under which
concessions were to be granted, while specifying that foreigners could participate
in mining operations only as shareholders.
The Ottoman Ma’âdin Nizamnâmesi was renewed in 1869.334 This regulation was
clearly more comprehensive than previous one and it was prepared according to
330
Cited in Behice Tezçakar, ―Erzurum- Pülk,‖ 38 .İrşat İldeniz. ―Vilayet Salnamalerine Göre
Trabzonun İktisadi ve Ticari Hayatı‖ (M.A. diss, Ankara University), 59.
331
COA. DUİT. Nr.21/2–1. Articles 32 to 34.
332
Özkan Keskin, ―Osmanlı Devleti’nde,‖ 130.
333
With a suitable period of time in the concession process.
334
Cited in Özkan Keskin, ―Osmanlı Devleti’nde,‖ 131. A.Gündüz Ökçün, ―XX. Yüzyıl,‖ 807–
808.
81
the French Mining Law in 1810.335 It was consisted of four sections and ninety-
eight articles.336 As different from the 1861 Nizamnâme, the new Nizamnâme
divided mines into three categories: the first group; Ma’âdin-i Asliye, the second
group; Ma’âdin-i Sathiye and third group was; Ocak because the French Mining
Law divided all mines into three categories.337 The first group includes mines in
the form of vessels or layers such as gold, silver, iron, tin, zinc etc. The second
group contains stone varieties such as the alloy sand, the soil with screed, etc.
Third group included marble, gypsum, limestone, clay, porcelain soil, pots, and
shrubs but this group interestingly had not been included in the text of the new
regulation.338 Neft was considered in this new regulation as a mineral for the first
time. In those years, first oil drillings had started in the world thus; it can be safe to
assume that this consideration cannot be a coincidence.
The time limit for giving concessions was not specified in the regulation of 1861.
In spite of the previous regulation, the regulation of 1869 set a time limit for mine
concessions as ninety-nine years.339 In the tax part of the regulation, there were
some significant changes. The tax related issues were tried to be solved in order to
prevent controversies that could arise from the new regulation. Accordingly, the
tax rate for a mine was designated five Ottoman kurus for one acreage; it was
called as ―Resm-i Mukarrer.‖ 1-5% tax would be levied on the ore income to be
335
Stanford J Shaw and Ezel Kural Shaw, History of the, 101–102.
336
Also, cited in Volkan Ş. Ediger, Osmanlı’da Neft, 88–93. Düstur I. Tertip Vol II, P.317–337.
337
Stanford J. Shaw and Ezel Kural Shaw, History of the, 102.
338
Also cited in Özkan Keskin, ―Osmanlı Devleti’nde,‖132. Düstur I. Tertip Vol II, P.317–337,
Articles 2 to 4.
339
For the full text of the nizamname, see: Düstur I. Tertip Vol II, P.317–337.
82
excluded in one year; it was named as ―Resm-i Nisbî‖ in return for allocated mine
areas. In addition, the edict fee was determined 50–200 Ottoman liras.340 The tax
related part of this mine regulation was prepared in detail. This shows that the
Ottoman statesmen started to give more importance to the tax income resulting
from mine operations. This changing attitude can be related with the worsening
fiscal situation of the Empire or increasing foreign demands on Ottoman mine
concessions at the time.
Within a few years, the changing production techniques, the developments in
mining, the improved experiences and the increasing concession demands had
paved the way for a new mining regulation. For new regulations, a commission
was established in 1873.341 Perhaps, one of the most important reasons of this
establishment was German Ernest Weiss, the chief mine engineer of the time in the
Empire. He reported some issues related with the1869 mine regulation and lack of
mine engineers in the Empire. Weiss also showed efforts to open a mining school
in the Empire.342 However, this commission would not completely reach its
purpose until 1887.
The new commission gathered to remove the existing problems of the current mine
regulation and meet the needs of the current circumstances at the time. The
340
Düstur I. Tertip Vol II, P. 317–337; Articles 38, 40 and 41.
341
Keskin stated members of the commission: Yusuf Efendi was chair, Miralay Ahmed Bey,
Mikail Efendi from Rusûmât Meclisi, Ali Şefik Efendi from Şûrâ-yı Devlet and İbrahim Efendi
from Divan-ı Ahkâm-ı Adiliye were appointed as members. Cited in Özkan Keskin, ―Osmanlı
Devleti’nde Maden,‖ 132.
342
Özkan Keskin, ―Osmanlı Devleti’nde Yabancı Maden Mühendislerinin İstihdamı ve Osmanlı
Madenciliğine Hizmetleri‖ Yakın Dönem Türkiye Araştırmaları. 11, (2017), 79–92,Web:
http://dergipark.gov.tr. p, 85.
83
Ottoman Empire declared the new mine regulation in 1887.343 The new mine
regulation consisted of nine sections and ninety-two articles. Although there were
some similarities with the previous regulations, it was more comprehensive than
previous ones. Different from previous ones, a person would not be able to make a
mining search without permission and license even in his own property. They had
to obtain a license from the state by specifying the sort of the mine and the
boundaries of the land.344 This article demonstrates that the increasing demand in
those years by local or foreign entrepreneurs over Ottoman mine resources,
especially oil, had influence on the preparation of the new regulation.
There were other significant changes in the new mine regulation of 1887
especially in the tax part. The Empire increased taxes for mine operators and
concessionaries and; the regulation changed tax rates specified according to
mineral diversities. ―Resm-i Mukarrer‖ for allocated mine areas was increased to
ten kurus in 1887. ―Resm-i Nisbî‖ for the mine operation in one year, specified as
1–5% for the drilled mines such as copper and coal. 10–20% was determined for
mines like sand, chrome, neft, bitumen, etc. Nevertheless, the fines and penalties
were increased to 50 –100 gold.345 This increasing taxes and arrangements can
show that Ottoman Empire needed to do these changes to earn more income from
increasing concession demands for the Ottoman oil resources. The high and
remarkable tax rates of the oil diversities like bitumen and neft can prove that
argument.
343
COA. T. Nr.1498–46; Düstur I. Tertip, Vol.5, 886–904. This document was cited in Özkan
Keskin, ―Osmanlı Devleti’nde Maden,‖.
344
Özkan Keskin, ―Osmanlı Devleti’nde Maden,‖ 133. In that regard, the Ottoman Empire tried to
preserve the mine resources of the Empire by law enforcement.
345
Düstûr I. Tertip, Vol. 5, p.886–904. Articles; 1–3, 5, 6, 25, 42, 43 ve 71.
84
The last mine regulation related with the mine legislations introduced some radical
changes in the Ottoman Empire, was carried out in 1906. There were increasing
numbers of the foreign mine concessionaires in those years. As a result of the
increasing demands of the foreigners, a new mining code was needed to be
prepared for the Empire.
The preparatory phase of this regulation had a compelling process346 because there
were many international actors, like major countries of Europe who were
interested in Ottoman mines especially neft. These actors wanted to keep custom
taxes low, as was the case before to keep their earlier concessions but the Ottoman
Empire was insistent on the increasing tax rates in the customs.347After long
discussions, the new mine regulation was issued on April 9, 1906.348 In addition,
the increase in the customs was approved a year after the decree was
promulgated.349 Foreigners were more interested in Ottoman mine regulations than
locals and they tried to intervene to keep the tax rates low for the Ottoman mine
concessions especially oil. Nevertheless, Ottomans managed to increase the taxes
despite the foreign pressures.
Beside this increase in the taxes, there were some other changes in the new mine
regulation of 1906. For instance, one of the noteworthy articles was that
346
Charles Issawi. The Economic History of Turkey 1800–1914, Chicago; 1980, 273.
347
Since import taxes were limited to concessions, the Empire had to be agreed with European
States; especially French and England resisted keeping their concessions. Blaisdell, Donald
C.Translated by Atıf Kuyucak, Osmanlı İmparatorluğunda,147. For further information, look at
Özkan Keskin, ―Osmanlı Devleti’nde Maden,‖ 134.
348
For the full text of the1906 Nizamname, see: COA. Y. A. HUS. Nr. 501-115.
349
Donald C Blaisdell,.Translated by Atıf Kuyucak, Osmanlı İmparatorluğunda,157.
85
concessionaires had no other rights over the minefields apart from mine
activities.350 This article was most probably regulated to prevent the Ottoman
resources from the investors working for European states. Also, the regulation
allowed the search for mines in fields where property owners were not eager for
the exploration.351
On the other hand, the last mining regulation carried similar articles of the
previous texts, while including new provisions. For example, the provisions such
as classification of mines, the period of concessions, the entrance of foreigners into
the mining tender, the right of inventorship (mucitlik hakkı) given to the mineral
explorers, the designation of the map of the mine by concessionaires and the
declaration of the tender in the newspapers etc. were preserved in the new
regulation.352
The Ottoman mine regulations especially 1887 and 1906 reflect necessary legal
adjustments or improvements to meet the needs of the Empire. There were
opportunists who tried to easily acquire mining concessions with low prices by
benefiting from the gaps in the Ottoman mining laws. Furthermore, these
opportunities could hand their rights over to others without any responsibilities
and could use their rights even if these were disadvantageous for the Empire.
350
Accordingly, the concessionaire would not be able to carry out any other activities besides
mining within the land. Most probably, this was against illegal oil searchers. Özkan Keskin,
―Osmanlı Devleti’nde Maden,‖ 135-136.
351
Özkan Keskin, ―Osmanlı Devleti’nde Maden,‖136.
352
COA. Y. A. HUS. Nr.501–115. Articles; 1–8, 30–39. This document was cited in Özkan
Keskin, ―Osmanlı Devleti’nde Maden,‖ 135–136.
86
Consequently, the Ottoman oil concessions could only be granted through official
correspondences between the Ottoman Empire and concession seekers.
Concessionaires had to have an authorization for a search permit via an imperial
concession edict. The search permit was given for a one year period for drillings
on the purpose of exploration or examination. In accordance with the regulations,
search work had to be started within six months after the date of the permit. This
process was carried out or controlled by the provincial mining engineers and other
local officers and reported to the Mining Administration.353 Ministry of Forestry,
Mines and Agriculture of the Empire approved the completed preliminary work
and explorations, if these actors were satisfied with the activities of the
concessionaires and the efficiency of their work.354 The concession licenses could
not be transferred or sold without the approval of the provincial administration
councils and the governor's permit. Partnerships, which the state did not officially
approve, were not also recognized.355
4.3 International Interests and Rivalries for Ottoman Oil Resources
During the nineteenth century, European states especially France and Britain
already had significant gains in the Ottoman Empire. In terms of modernization,
the Empire tried to adapt into the world economic system by giving substantial
353
354
Marian Kent, Oil and Empire, 216.
355
87
concessions to Britain through the Treaty of Balta Limanı in 1838. This treaty
gave Britain a free access to the Ottoman markets.356 This encouraged other
European powers to model with similar agreements. These agreements increased
the export of raw materials to Europe and these raw materials were sold back to
the Ottoman Empire as manufactured goods with high prices. In order to prevent
budget deficit, Ottomans had to borrow several loans from European countries
especially from Britain and France, shortly after the Crimean War (1853–1856).357
A considerable proportion of the revenues in the Empire were pledged to the
foreign-organized Düyûn-ı Umûmiye (The Ottoman Public Debt Administration)
in 1881.358 Great powers like France, Germany and Britain were eager to take the
advantage of this vulnerable financial condition of the Empire for their own
benefit by demanding new economic concessions. The Ottoman Empire had to
deal with these demands in order to pay its debts and guarantee new sources of
income.359
In those years, the world was preparing for the oil era in terms of energy
resources. At the same time, the enormous oil wealth of the Ottoman Empire was
realized by European powers. The Ottoman oil reserves turned to a subject of the
Ottoman concessions for the Europeans.
The quality of the oil reserves in the Mesopotamian region was quite promising for
commercial purposes. The aforementioned great powers tried to expand their
356
Charles Issawı, The Economic History, 38–40.
357
Charles Issawı, The Economic History, 65–90.
358
İlber Ortaylı, ―Abdülhamid,‖ 76–77.
359
See Blaisdell, Donald C.Translated by Atıf Kuyucak. Avrupa malî kontrolü.
88
influence on Abdulhamid II’s internal or external policies regarding the Ottoman
oil. While France, Germany and Britain had been competing with each other to
gain political, economic, financial, commercial and important strategic advantages
for obtaining concessions from the Ottoman Empire, Abdulhamid II tried to follow
a foreign policy based on international balance.360 The Ottoman oil resources
would be taken into consideration within the heat of this rivalry.
From 1890s to early 1900s, France made an agressive attempt for their objective.
French investors had more than half of the Ottoman foreign debts in 1898.
Therefore, the attempt was mainly expanded to respond to German ambitions on
the Near East. French governments acted against Germany’s increasing influence
over the Empire, and this was sitimulated by ―a Franco-German rivalry‖ over
obtaining concessions from the Ottoman Empire.361 Accordingly, the French
investors tried to invest in the establishments of Ottoman railway projects.
French railway companies had interest in Ottoman market and they sought for
railway concessions by 1898. The Salonika-Constantinople Junction and Smyrna-
Cassaba companies were of French origin and they successfully operated these
important lines. Another French operated line was between Mersin and Adana.
Besides, French companies also owned harbor operations in the Ottoman Empire,
which were located in Constantinople, Beirut, Smyrna and Salonika. Kent also
stated that an important line in Syria started to be built in 1892 by the Beyrouth-
360
Ebubekir Ceylan. 2004, pp. 592 and 593. ―Engin Deniz Akarlı, The Problems of External
Pressures, Power Struggles, and Budgetary Deficits in Ottoman Politics Under Abdulhamid II
(1876–1909): Origins and Solution.‖ Türkiye Araﬂt›rmalar Literatür Journal, Vol 2, 1, 2004, 591–
596.
361
Marian Kent, The Great Powers, 141-145 and 154. For further information, see: Edward Mead
Earle, Turkey, 58 to 81 and 153- 171.
89
Damas-Hauran Company, which was another French enterprise.362 İlber Ortaylı
argues that these concessions given to French companies were ―preemptive
maneuvers‖ against German railway endeavours in the Ottoman Empire.363
Therefore, these railway concessions, which French companies obtained, were a
response to the increasing interests of Germans on the Ottoman territories in terms
of international rivalry.
Nevertheless, French investors were confident in terms of getting benefit from the
Ottoman oil resources and the related operations. In that regard, Monsieur Rozo,
one of the chief mine engineers in France, made an application to the Ottoman
Empire for the Mesopotamian oil concession.364 In 1900, Monsieur Rozo signed a
contract prepared by the Hazine-i Hassa, containing similar articles to the
application conditions demanded from Nemlizade Hasan Tahsin Efendi,365 which
was discussed in previous chapter. Although detailed examinations had already
been made about the region, Monsieur Rozo hesitated to pay two and a half
million francs specified by the Hazine-i Hassa as fee. Since there was no payment,
Abdulhamid II did not approve the agreement after a few months delay.366
In the last years of the 19th century, Britain and Germany also developed vigorous
interest in the oil resources of Mosul and Baghdad. The practice of sending out
―scientific‖ or ―archaeological‖ missions, quietly conducting researches to find oil
362
Marian Kent, The Great Powers,141–142.
363
364
365
366
90
continued,367 and diplomatic interventions to obtain concessions started in the
Ottoman Empire through concessionaires.368
Britain’s interest in the Ottoman oil was naturally concentrated primarily on the
today’s Iraq and the Persian Gulf.369 For Britain, it was not only about oil but also
maintaining British supremacy over the Indian trade route.370 Britain wanted to
keep its commercial and political dominance over the region.371 Britain wanted to
have access to Ottoman oil resources albeit did not push the issue hard enough
because it had already obtained many oil concessions in Persian regions in those
years.
For this reason, Britain attempted to have more knowledge about Ottoman oil
resources in particular. For instance, a British geological research in 1899
confirmed that Mosul, Baghdad and Basra Provinces of the Empire were rich in
terms of petroleum reserves. According to this research, ―crude oil from the cliffs
was polluting the Tigris River for nearly 3 miles‖372 Another report indicates,
―The oil could be at once shipped into light steamers and barges… offers a natural
outlet towards the Persian Gulf.‖373 Furthermore, Sir Nicholas Roderick O'Conor,
367
Hikmet Uluğbay, İmparatorluktan, p. 21.
368
Marian Kent. Oil and Empire, 17.
369
COA. BEO. 2001/150029. This document shows that an English investor with Iranians from
Iranian Oil Company made researches on oil reserves in Mendeli region.
370
In particular, the Mesopotamian region has firstly entered the British agenda due to Indian
policy, and the region had begun to gain more strategic importance due to its rich oil sources. Arzu
Terzi, Bağdat-Musul'da, 41.
371
372
Timothy Mitchell, Carbon,48.
91
the British Ambassador of Istanbul, wrote in 1900 ―discoveries of bitumen and
naphtha would greatly increase the productiveness of the line‖374 by implying
possible new rail-lines to be built in the region.
During the last years of the reign of Abdulhamid II, Britain showed some
diplomatic efforts so as to obtain an oil concession from the Ottoman Empire
through its Foreign Office. These efforts were justified on strategic ―reasons and
not necessarily commercial grounds‖ and Britain tried to respond or end
―…German interests.‖375 Briefly, the strategic and commercial considerations
were main components of Britain’s main attitude towards the Mesopotamian
region of the Ottoman Empire in terms of concession. Britain’s attempt to obtain
Ottoman oil concessions in the Hamidian Era aimed to restrict German activities
in the Ottoman Empire as an international rival. For example, there is an archival
document indicating that today’s well-known tribe of the region, the Talabani
tribe, sabotaged oil operations held by the Hazine-i Hassa in 1900 and 1901.376
German Groskopf was in the region and researching these reserves at the time. It
is interesting that this tribe was acting against Ottoman interest at the time. In
addition to that, some Persian tribes attacked some oil lands of Ottomans in
Baghdad in December 1903 and Ottomans had to secure the land by establishing a
373
F. R. Maunsell, ―The Mesopotamian,‖ 530 and 532.
374
Cited in Marian Kent. Oil and Empire, 16. O'Conor to the Marquis of Salisbury (Foreign
Secretary, until November), despatch 231 (confidential), 3 July 1900, FO 78/5102.
375
376
COA. DH. ŞFR. 257 94. Another document related to these sabotages cited in Abdurrahim
Fehimi Aydın and Ahmet Zeki İzgöer. Osmanlı’da Petrol, 98 and 99. COA, Y.PRK. AZJ 25/8. On
the other hand, Arzu Terzi stated that this tribe operated some oil resources in Kil region of Mosul
Province of the Empire by using their local power to have privileges for the operation. See Arzu
Terzi, Bağdat-Musul'da, 169 to174.
92
patrol control.377 In the meantime, Germany obtained oil concessions from
Ottomans for these regions. When the British oil activities in Iran and their effects
on Persian tribes in the region were considered,378 it can be safe to assume that
Anglo-German rivalry over the oil resources of the region started as early as
1900s.
On the other hand, Britain tried to be influential in Kuwait and Basra regions of
the Ottoman Empire. Britain had established good relations with the sheikh of
Kuwait. It can be said that British political leaders wanted to control Persian Gulf
region to secure Indian trade and to be a significant actor in operating the oil
resources of the today’s Iraq regions.379 For example, Britain showed a big
reaction to the railway concession which Abdulhamid II granted to the German
Anatolian Railway Company at the end of 1899. That caused a rivalry over Kuwait
and Basra regions after 1900s.380 Besides these, British trade with the Ottoman
Empire started to lose its major significance, and issues related to economics were
added to the controversy. The Ottoman Empire had new powerful ally, Germany
that threatened the financial and political influence of France and Britain by its
rapid expansion in the Ottoman Market..
377
Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer. Osmanlı’da Petrol, 193, 194 and 195.
COA, İ.AS, 47/70.
378
There are several archival documents showing British oil activities in these regions on the
border of Iran and Ottoman Empire. For example see: COA. DH-MKT, 588/39 and DH. ŞFR. 318/
85.
379
Hikmet Uluğbay, İmparatorluktan, 13–16, 24, 25.
380
Gökhan Çetinsaya. ―II. Abdülhamid’in İç Politikası: Bir Dönemlendirme Denemesi‖. Osmanlı
Araştırmaları / The Journal of Ottoman Studies, XLVII (2016), 353-409, 294.
93
The significant financial investments of France and Britain were followed by the
financial and political involvement of Germany in the Ottoman Empire. In 1880s,
after its unification, Germany had become one of the most dominant states in
Europe, economically, technologically and militarily.381 In 1890s, Germans made
expansionist moves particularly in East Asia in order to industrialize the country
and find new markets. This expansion affected the regions of the Ottoman Empire
in which France and Britain endavoured to increase their political and economic
interests.‖382 It also caused annoyance or outright concern among other European
powers.383 As Edward Mead Earle said, ―German involvement in the affairs of the
Ottoman Empire grew steadily, highlighted by rising investments in, and trade
with, the sultan’s realm.‖384 This involvement would contain a range of oil
concession agreements between Germany and the Ottoman Empire.
Germany and the Ottoman Empire had better relations compared to other Great
Powers. It became obvious that Germany provided significant political and
financial alliance to the Ottoman Empire and supported the modernization of the
Ottoman institutions, especially Ottoman army by sending some German military
experts.385 In addition, some major economic projects in the Ottoman Empire were
financed and managed by German establishments like Deutsche Bank.386 These
projects were useful railway establishments for the Ottoman Empire and would
381
382
David Fromkin. A Peace, Chapter 2.
383
A.Craig, Gordon. Germany 1866–1945 (New York, 1978), chapters 7–9.
384
Edward Mead Earle, Turkey, Chapters 2. Marian Kent, The Great Powers, 112.
385
386
94
result in giving oil concessions to Germany. All of these put Germany ahead of
France and Britain especially to obtain oil concessions from the Empire.
Consequently, the political atmosphere of the time and the geopolitical concerns
brought Germany one-step ahead of France and England with regard to Ottoman
oil concessions. Besides, French investors could not acquire oil concessions,
instead of that; they confined themselves with railway concessions, located in
regions with oil resources, Syria. Britain had enough oil concessions in Persian
regions in those years and it wanted to keep the access to Ottoman oil resources
thus it did not force Ottomans to obtain oil concessions. Abdulhamid II, on his
part, completely did not trust Britain and France for oil business because of their
hostile actions in his realms. He was worried about British plans to dominate trade
routes by connecting Egypt to India and French intentions over Ottoman Syria and
Lebanon especially after 1880s.387
4.4 German Oil Concessions and Anatolian Railway Company
Second half of the nineteenth century witnessed Germany’s expansionist policies
towards the Ottoman Empire.388 As a late comer to the colonial rivalry, Germany
was pursuing aggressive policies towards the the Ottoman Empire.389 This new
387
François Georgeon, Sultan Abdülhamid, 477.
388
Musa Gümüş, ―1893’ten 1923,‖ 160.
389
Marian Kent, The Great Powers,‖ 2–3.
95
and dynamic power of Europe was trying to strengthen its own influence in the
Empire. From the Ottoman perspective, this new power of Europe was an
opportunity or another option as a neutral ally for the Ottoman administration for
developing new international policies and modernizing the Empire instead of
being in constant need of Britain and other European powers. In addition, Britain
invaded Ottoman Egypt in 1882 and its influence in the region was needed to be
balanced with German involvement in the Empire according to Abdulhamid II.390
David Fromkin added, ―The Turks, unable to stand on their own, turned therefore
for support to another power, Bismarck’s Germany; and Germany took Britain’s
place at the Sublime Porte.‖ 391
Despite Fromkin’s statement, Germany needed the Ottoman Empire for a fertile
expansion in order to achieve the level of industrialization of its rivals. Since
leaders of the state Otto Von Bismarck392 desired Germany to be effective in the
international arena, they needed to be effective and powerful in both politics and
economics. İlber Ortaylı claimed Germany was a ―hungry country without having
colony. Germans wanted to provide the necessary grain, vegetables and oil from
the lands of Anatolia and Mesopotamia.‖393 They were well aware of rich
underground reserves of the region as a result of many studies, such as oil
explorations of Paul Graskopf in the region.394 By obtaining concessions from the
390
Ebubekir Ceylan, ―Engin Deniz Akarlı,‖ 593.
391
David Fromkin, A Peace, Chapter 2.
392
He was a conservative Prussian statesman who dominated German government from the 1860s
until 1890.
393
394
İlber Ortaylı, ―Abdülhamid,‖ 93. See also Edwin Black, Banking on, 117.
96
Ottoman Empire, Germany wanted to provide permanent energy resources, raw
materials and acces to a large market.395
The first important interactions between Germans and Ottomans began during the
early years of 1880s. Some German army officers were employed to reform the
Ottoman army and train Ottoman officers.396 After Kaiser Wilhelm II397 had sent
Bismarck into retirement, this relationship was maintained and became strong.398
The Kaiser was especially interested in the Ottoman Empire and stepped forward
as part of an effort to create a sphere of dominance in the region. He officially
visited Ottoman Empire twice in 1889 and 1898 to develop bilateral relations.
The first travel was in autumn of 1889, German Emperor visited Istanbul and;
Abdulhamid II hosted him in a very friendly manner. The Sultan staged feasts and
celebrations wherever the Kaiser traveled in the Empire. In his second visit,
Abdulhamid II even removed a section of Jerusalem’s Old City Wall to build a
road for Kaiser Wilhelm to enter the city on his stallion.399 These visits were very
fruitful in terms of developing mutual policies especially in business. These visits
increased the influence of the German Empire in the region.400 About these visits,
Marian Kent notes that ―Kaiser Wilhelm was able to present himself to the
395
Musa Gümüş, ―1893’ten 1923,‖ 166.
396
İlber Ortaylı, ―Abdülhamid,‖ 45 to 50.
397
Wilhelm II was known as Kaiser Wilhelm, he was German Kaiser from 1888 to 1918.
398
Marian Kent, The Great Powers,108.
399
400
İlber Ortaylı, ―Abdülhamid,‖ 52–53
97
Muslim world as the champion of Islam against its enemies.‖401 During the first
visit of the German Emperor to the Ottoman Empire, it was visible that the
Ottomans were very eager to establish an alliance with the German Empire.402
Abdulhamid II was interested in a railway project, linking Istanbul with Basra, as
it was an essential project to consolidate his authority.403 Actually, this was a
project of Mithad Pasha, former governor of Iraq. Some other statesmen like
Abdurrahman Pasha and Nusret Pasha advocated the merits of such a big project
from political and financial point of view.404 Accordingly, the Ottoman state
proposed Germans to construct railways to transport Ottoman oil out of the
Empire (to Europe). Ottomans offered Germans a concession for rail-lines
connecting Ottoman lands in today’s Middle East from Istanbul to Germany
(Hamburg). The large German company, Deutsche Bank405 started to negotiate
with Ottoman authorities for the railway concession containing an oil concession
in 1888 by offering to give 30 million Marks as a credit.406
In that year, Abdulhamid II granted the railway concessions to the Anatolian
Railway Company407 containing German entrepreneurs like Alfred Kaulla. The
401
Cited in Marian Kent, The Great Powers,‖ 100. Enver Ziya Karal. Osmanlı Tarihi, Vol. VIII,
p.180. Kent added that there were other financial and the geopolitical reasons that associated these
two Empires with each other.
402
Behice Tezçakar, ―Erzurum- Pülk Oil,‖ 92–93.
403
Gökhan Çetinsaya, Ottoman, 35-37.
404
Gökhan Çetinsaya, Ottoman, 36.
405
The leading German investment bank and financial services company at the time.
406
Sean Mcmeekin. The Berlin–Baghdad Express: The Ottoman Empire and Germany’s Bid for
World Power. The Belknap Press of Harvard University Press Cambridge, Massachusetts, 2010.
98
company organized and operated by the Deutsche Bank.408 It would rail and
operate the lines; from the Haydar Paşa to Izmit; from Izmit to Ankara and Konya.
This railway project was the first step in line connecting Bagdad and Basra
eventually. In the contract, it was issued that Anatolian Railway Company had
preferential right to operate all mines including oil, around railways.409 It clearly
proves that Germany aimed to take the advantage of Ottoman oil reserves through
railway concessions.410
After almost ten years, during Kaiser Wilhelm’s second visit, the German
Emperor obtained additional concession license for the construction of the railway
lines, from Konya to Baghdad.411 It was the first foreign concession, concerning
the Ottoman oil in those years.412 In spite of this, Abdulhamid II issued three
consecutive decrees from 1888 to 1902, placing the oil properties of the Empire to
the possession of the Hazine-i Hassa.413 Despite all the needs of German presence
407
The german company founded on 4 October 1888, was a railway company that operated in the
Ottoman Empire by Deutsche Bank. For further information look at İlber Ortaylı, ―Abdülhamid,‖
45–70.
408
See Gökhan Çetinsaya, Ottoman Administration of Iraq, 36.
409
Stephen Hemsley Longrigg. Oil, p.13.
410
Edward Mead Earle, Turkey, the Great Powers, 5 and 13-17.
411
İlber Ortaylı, ―Abdülhamid,‖ 45 to 70.
412
Marian Kent, Oil and Empire,‖ 16.
413
413
Gökhan Çetinsaya, Ottoman Administration of Iraq, 36.
413
This document cited in İlber Ortaylı, ―Abdülhamid,‖ 86. PRO-FO 78–5102 Commercial-
Confidential, Ambassador O' Conor’s Foreign Office'e Report, Const. July 24/ 1899, p. 277–279.
413
Timothy Mitchell, Carbon, 48.
413
Marian Kent, Oil and Empire, 16.
99
in Ottoman economic affairs, the Sultan tried to guarantee his control over the
Ottoman oil resources against the German expansion.
In May 1899, the Anatolian Railway Company officially applied for a new
concession to extend the Anatolian Railway project from Konya to Baghdad and
Basra.414 The pre-concession agreement was signed between Zihni Pasha, Ministry
of Public Works and G. von Siemens, Director of the Deutsche Bank on December
13, 1899 by paying 200,000 Ottoman Liras as deposit to the Ottoman Treasury.
They promised to complete the rail-lines in eight years after a long bargain.415 This
agreement was an important success for the Ottoman admistration.
After the agreement, a German technical commission prepared a report in 1901
and introduced Mosul as ―a veritable lake of petroleum‖.416 Dr. Paul Rohrbach, a
famous German publicist at the time, mentioned oil in his evaluation of the Kirkuk
region politically and financially while introducing the Baghdad railway in 1902 as
follows:
... We ought to attach the greatest importance to the circumstance that

the Baghdad Railway will pass close to the petroleum districts. The
only thing to be feared is that foreign gold and foreign speculators
should succeed in securing a preferential right in the exploitation of
Mesopotamian oil before any effective German initiative has been
taken.417
414
Gökhan Çetinsaya. Ottoman Administration, 36.
415
Sean Mcmeekin. The Berlin–Baghdad, 42. In this way, it can be claimed that Germans pledged
their investment for Ottomans in a specific plan to also connect the rich oil lands to Istanbul within
a certain time by the railways.
416
Timothy Mitchell, Carbon, 48. See, Edward Mead Earle, Turkey, 15.
417
Marian Kent, Oil and Empire, 16. See Edward Mead Earle, Turkey, 15.
100
The report of the German technical commission and Dr. Paul Rohrbach’s writing
proves that one of the main aims of Germany for railway projects in the Ottoman
Empire was to be able to gain access to Ottoman oil reserves.
4. 5 The 1904 German – Ottoman Agreement
After the pre-concession agreement was signed for Baghdad Railways in 1899,
the official but temporary concession agreement was signed between the
Anatolian Railway Company and the Ottoman Empire on December 16, 1902.
Then, the concession for buiding and operating Baghdad raillines was given to the
Germans.418 Thus, the Anatolian Railway Company organized the Baghdad
Railway Company with 15 million francs capital on 5 March 1903, under a
convention involving the Sultan’s Hazine-i Hassa and German entrepreneurs like
the Deutsche Bank.419 The Anatolian Railway Company had 10% of the capital of
the new company. There were eleven members of the board of Directors of the
Convention. In the board, three members were from Anatolian Railway Company
representing Germany and three members were Ottoman citizens representing
Ottoman Empire.420
418
Edward Mead Earle, Turkey, 33–34 and 111.
419
420
101
Eventually, the Deutsche Bank’s convention for Baghdad Raillenes to Germany
was established through the Anatolia Railway Company, which acquired the
concession rights permitting the construction of rail-lines from Konya to Basra.
The article 22 of the contract included that concession rights for mine exploitation
including oil through the proposed lines restricted to twenty-kilometers were
given to Baghdad Railway convention.421 That can be recognized as the most
significant aspect of the agreement in terms of the Ottoman oil concession. In that
way, 1903 Railway Agreement granted Germany a preferential right over the
Ottoman oil resources along railway lines.
The next year, the Anatolian Railway Company signed a historic contract with the
Hazine-i Hassa in July 1904, known as 1904 Agreement,422 in order to obtain
petroleum exploration license. The contract granted a year research permit for
investigating oil in the provinces of Mosul and Baghdad. The concession right
was rapidly transferred to the Deutsche Bank. If oil was officially to be discovered
in Mosul and Baghdad Provinces of the Empire, a 40-year concession right would
be activated for Germans, as Black said, ―Mesopotamian oil seemed destined to
be German.‖423 According to the agreement, the final examinations and costs had
to be submited to the Hazine-i Hassa until the end of the year. Then, the Ottomans
accepted that if the Convention applied to operate the oil reserves, it would
conclude with a special convention granting long period of concession under the
421
For further information look at: Marian Kent, Oil and Empire, 16.
422
For original French text: Marian Kent, Oil and Empire, Appendix 1. In addition, for Turkish
transcription, look at Hikmet Uluğbay, İmparatorluktan, 277–278.
423
102
control of Hazine-i Hassa.424 Indeed, these oil concession rights would reinforce
economic dominance of Germany in the Ottoman provinces. As an addition,
Daniel Yergin states that German influence in the region was promoted by the
1904 Agreement.425
The aim in acquiring exclusive rights for the Mesopotamian oil of the Ottoman
Empire was to transfer the rich oil reserves of Mesopotamia to German markets
through the Baghdad Railway.426 Accordingly, after having the oil concession
right on July 1904, German investors rapidly completed 200 km’s of rail line
between Konya and Bulgurlu (in 19 months).427
Moreover, by completing the projected railways Germany would jeopardize the
strategic significance of the Suez Canal, which was under control of Britain. If all
goes planned with this concesion, Germans would be able to make great powers
dependent on its transportation facilities and oil reserves as current resource of
energy.428 As an important proof behind this argument, Deutsche Bank would
later acknowledge that the whole affair of Germany in the Ottoman lands ―was
carried out for tactical reasons.‖429
424
COA, Y. PRK. HH. 35/56 ; Article 2.
425
Daniel Yergin, The prize, Chapter 10.
426
427
428
Musa Gümüş ―1893’ten,‖ 67.
429
Timothy Mitchell, Carbon, 55.
103
On the other hand, Germans missed a one-year time limit to submit the report of
investigating oil in the provinces of Mosul and Baghdad to the Hazine-i Hassa
without any reasonable explanation. Therefore, the Minister of the Hazine-i Hassa
Ohannes Kazasyan stated, ―Even if the necessary studies have been done, the
indicated time limit has already passed—and the result has not been
communicated to our Ministry as of today.‖430 Ohannes Kazasyan gave one-year
extension to the company to complete the necessary studies related to the
petroleum deposits of the region.431 German officials could not complete the
necessary research.
In the end, the Ottoman Hazine-i Hassa protested the oil contract with Germany
on March 1907 and it was stated that Deutsche Bank ―had not fulfilled certain of
its provisions, notably with respect to test borings.‖432 Nevertheless, it is unclear
why the Germans could not use the most extensive oil concession rights during
three years.433 The negotiations about oil concessions would remain deadlocked
until the Young Turk Revolution of 1909. Even if British and American
entrepreneurs approached to the Ottoman administration for the oil concessions
later,434 they could not obtain any oil concessions in the remaining period of
Abdulhamid II.
430
Edwin Black, Banking on Baghdad, 121. Ohannes Efendi Kazasyan (Minister of the Privy
Purse) to Ottoman Railway Company of Anatolia, Jul 26/Aug 8,1905. See also,Volkan Ş. Ediger,
Osmanlı’da Neft ve Petrol, 215–221.
431
432
Timothy Mitchell, Carbon, 55 and 56.
433
Edwin Black explains this failure with those words ―Conditions in Mesopotamia were
challenging. Communications and connections were poor. Anatolia Railway knew trains, not oil
wells. Organizing industrial exploration and proper geological studies would not be easy or
expeditious.‖ Edwin Black, Banking on Baghdad, 121.
104
4.6 Abdulhamid II’s “Balanced Policy” and Oil
When Abdulhamid II acceded to the throne in 1876, the Empire had been already
under financial control of the Great Powers of Europe, especially France and
Britain.435 In 1880s, more than 30 percent of the entire revenue went directly to
Düyûn-ı Umûmiye. Therefore, the foreign intervention in the Ottoman affairs and
the Ottoman finances was the most substantial danger threatening the Ottoman
Empire according to Abdulhamid II.436 In that regard, the Sultan considered these
major powers of Europe as responsible for the foreign intervention to the
sovereignty of the Ottoman Empire.437 He hoped that the Empire could free itself
from this vicious cycle by developing its fundings and paying back the foreign
debt as quickly as possible while not just modernizing his realm but also,
strengthening his own position in the Empire.438 In response to the foreign
intervention, the Sultan had pursued his famous ―balanced policy‖439 in
international relations with regard to the major European powers in order to
implement his own agenda. Engin Deniz Akarlı explains this policy with
following arguments:
434
Gökhan Çetinsaya, Ottoman, 29. However, shortly after Abdulhamid II’s deposition, in August
1912; the British Government and Deutsche Bank jointly would set up the Turkish Petroleum
Company by otaining oil concessions from the Empire for Mosul and neighbouring vilayets.
Calouste Sarkis Gulbenkian would have 15% share and the National Bank of Turkey and Royal
Dutch-Shell would have some big shares. Two years later, French investors involve in this
concession to claim their shares. See Marian Kent. Oil and Empire, 34.
435
The Empire gave significant trade rights to England through the Treaty of Balta Limanı in
1838, it provided free trade for England throughout the Empire. Consequently, a large amount of
the Otoman national profits were pledged to Düyûn-ı Umûmiye. For further information: Issawı,
Charles. The Economic, 38–40. ; İlber Ortaylı.II. Abdülhamid..., 76–77. And; See Donald. C.
Blaisdell, European Financial.
436
Engin Deniz Akarlı. Abdülhamid II, 15.
437
Engin Deniz Akarlı, Abdülhamid II, 12. See: Suat Parlar, Petrol, 95.
438
439
Vahdettin Engin. Pazarlık, 4–5.
105
Abdulhamid tried to hold his ground by taking advantage of the
rivalries among the European powers and by resorting to delaying
tactics. He hoped to gain time until the Ottoman government attained
a stronger position...440
In the first years of his reign, the Sultan’s balanced policy did not work efficiently
against interests and unceasing demands of Britain, France and also Russia
because these powers had already dominated the Ottoman economy. In this
regard, unified Germany emerged as a new Great Power. Germany as a financial
and political power emerged as a significant rival to the existing Great Powers to
seek to obtain political and commercial concessions from the Empire.
The Sultan welcomed German involvement, which had grown steadily, in the
affairs of the Ottoman Empire.441 He tried to use this involvement as part of his
―balanced policy‖ to check the aspirations of especially France and Britain.442 The
Sultan contracted many of natural resources of the Empire and planned additional
projects with Germany.443 The most remarkable of all these concessions was
Baghdad Railway project that enabled Germany to reach the rich oil resources of
the Ottoman Empire.444 Through those years, the discovered oil resources in the
Empire became one of the essential instruments as bargaining chips445 for
Abdulhamid II in this power struggle.
440
Engin Deniz Akarlı, Abdülhamid II, 15.
441
Edward Mead Earle, Turkey, chapters 2-3. See Marian Kent, The Great Powers, 11 and 112.
442
See François Georgeon. Sultan Abdülhamid, 475 to 480.
443
Engin Deniz Akarlı, Abdülhamid II, 15.
444
445
According to Akarlı, The Sultan wanted create maneuver areas in foreign policy by
manipulating Europeans powers against each other to increase the bargaining power of the Empire
and to end foreign intervention in domestic issues. In my opinion, Ottoman oil was one of the
106
In terms of Ottoman oil resources, Abdulhamid II knew that neft – oil surfaced to
the ground in various parts of the Empire. Travelers, missionaries, and military
specialists related to European great powers disguised themselves under the name
of archaeological excavations and traveled around the Empire especially Baghdad
and Mosul provinces identified the oil resources of the Ottoman Empire after
1870s. The Sultan learned that geologists were searching for oil or digging oil
wells in the Ottoman regions.446 Therefore, the Sultan wanted to learn why
Ottoman oil reserves were attracting Europeans. Abdulhamid II appointed experts
like Arif Bey,447 French Jakraz and German Graskopf448 to examine oil resources
of the Empire.
Following the promising reports of the appointed experts, Abdulhamid II well
understood that Ottoman lands might have major reserves of oil, which Europeans
were interested in. Therefore, the Sultan added or transferred the potential oil
reserves into his own property through Ottoman Hazine-i Hassa449 as a precaution
against possible foreign interventions450 to establish total control over operations
of these reserves. For instance, according to an archival document in 1900, when
news reached the Sultan that petroleum gas was found in Lake Van, an inspection
and a report was urgently requested.451The document shows that Abdulhamid II
eccential barganing chips in accordance with this purpose. See Ebubekir Ceylan. 2004. ―Engin
Deniz Akarlı, The Problems,‖ pp 512 and 513.
446
İsmet Bozdağ. Sultan Abdülhamid, 80–81. And see Necmettin Acar,― Petrolün Stratejik,‖ 8.
447
Arif Bey prepared a report showing Pil resources of Mosul and a related map. See Appendix 2.
448
For Graslopf’s oil map of Mosul region, see: Appendix 3.
449
450
Hikmet Uluğbay, İmparatorluktan, 17–38 and 48–56.
107
was very sensitive for the discovery of oil in his realm and who would be
involved in the discovery process.
Abdulhamid II firstly considered organizing an Ottoman drilling enterprise or an
Ottoman petroleum company. This plan needed much investment and long-term
effort.452 It was not possible to benefit from these oil resources in that manner
because the financial and political circumstances of the Ottoman Empire were not
developed enough to operate these resources at the time.453 In addition, the
equipments needed to drill were imported from Europe as we seen in Çengen oil
drillings. Therefore, it was costly to carry out an oil company dealing with all
these expenditures entirely. As another way to utilize these resources, the Sultan
tried to grant oil concessions to Ottoman statesmen or entrepreneurs like Ahmed
Necati Efendi and Grand Vizier Halil Rıfat Pasha who were closely related to the
state and under the Sultan’s supervision.
451
COA, DH-TMİK. M, 97/68. This document was published in Abdurrahim Fehimi Aydın and
Ahmet Zeki İzgöer. Osmanlı’da Petrol, 10 and 11..
452
453
Also, the property commission of the province of Mosul was also thinking in this way that a
telegram was sent about the possibility that these resources could not be exploited for the benefit
of the Ottoman treasure. Stephen Hemsley Longrigg, Oil, 13. And see, Arzu Terzi, Bağdat-
Musul'da, 194.
108
Table 4: Oil Production and Its Value between 1901 and 1908.
YEARS TON $/TON
1901 23.919.205 7.88
1902 26.000.868 9.45
1903 27.839.952 11.90
1904 31.172.056 11.70
1905 30.756.021 10.08
1906 30.487.903 11.27
1907 37.749.345 11.76
1908 40.793.249 12.46
Source : Cevat E. Taşman, Petrolün Tarihi, p.12454
Oil production and its value in those years were rapidly increasing at the same
time. Accordingly, ―the longer Mesopotamian petroleum was not extracted from
the ground, the more valuable it became.‖455 The Sultan well realized that the
more he possessed a valuable property; the more concession demands were
offered for these reserves, also allowing the representatives of the Great Powers to
increasingly outbid each other. For example, there are some archival documents
indicating that English investors were searching for oil around Mosul and
Baghdad in those years.456 These reports came from local agencies of the Sultan
and these prove that Ottomans were carefully following European oil activities
454
Adopted from Cevat E Taşman. Petrolün Tarihi, 12.
455
―The longer he delayed, the more it all appreciated, and the more precious his oil became.‖
Edwin Black, Banking on Baghdad, 124-125.
456
COA. Y. PRK. 47/47 and another activities in Iranian Border see: COA. DH. ŞFR. 318/ 85.
109
against the possible foreign aspirations for the Ottoman oil reserves. Abdulhamid
II well comprehended that he owned what the European powers wanted.
Because of all these, the Sultan used the Ottoman oil reserves as part of his own
―balanced policy‖ through oil concessions as political tools by developing
strategies based on the principle of mutual interests. The Sultan patiently waited
for offers and chose for the best price and best option to maintain the balance
between/against Great Power aspirations.457 And, the best price or best option for
granting oil concessions was not only matter of his balanced policy, it was also in
the consideration of his own agenda to modernize the Empire. For example, the
railway agreements between the Ottoman Empire and Germany were very fruitful
projects in terms of modernization of the Empire.
As it was mentioned before, the Ottoman Empire had been already exposed to the
financial interventions of Britain and France.458 The Ottomans mostly wanted to
work with Germany in oil related businesses because as a new raising power of
Europe Germany was a good option to establish a new ―balanced policy‖ against
foreign interventions. This approach generated an effective international
relationship in mutual benefits between two Empires.
Marian Kent explained why Abdulhamid II worked with or relied on Germany by
claiming that, this alliance revealed a new balance of power in Europe.459
457
458
İlber Ortaylı, ―Abdülhamid,‖ III.
459
110
According to him, Abdulhamid expected to counter the Russian threat by relying
on Germany without needing supports from France and Britain. His hope was to
end the ―Anglo-French monopoly over Ottoman affairs.‖460 Ortaylı argues that the
alliance between Germany and the Empire was also a show of strength towards
other international Powers.461
Common economic and geopolitical interests brought Germany and the Ottoman
Empire closer. For instance, Abdulhamid II extended international investments of
the Ottoman Empire towards Germany with economic enterprises like railways
and the Ottoman oil concessions in conjunction with them.462 In accordance with
this increasing interaction between the German and the Ottoman Empire; German
Carl Reiser, who was another applicant for Erzurum Pülk oils, was rewarded with
the oil concession of the region.463
In addition to these, Germans leaned towards and clearly supported Pan-
Islamism464 politics of the Sultan against British influence over Muslims
especially in today’s Near East regions of the Empire.465 François Georgeon
460
461
İlber Ortaylı, Osmanlıya Bakmak, 132.
462
Arzu Terzi, Bağdat-Musul'da, 31–31 and 204–209.
463
Behice Tezçakar discussed that decison in her thesis by specifiying ―He chose to grant the
concession rights for the oil reserves in Pülk to a foreigner of German origin... to reinforce and
strengthen the Ottoman German alliance.‖ Behice Tezçakar, ―Erzurum- Pülk,‖ 94.
464
It was emerged as a political consideration or act to unify all Muslıms under the authority of the
Caliph, Abdulhamid II in the late nineteenth century.
465
Ebubekir Ceylan, ―Engin Deniz Akarlı, The Problems,‖ 593. This was also a very significant
strategic concept to understand why the Sultan accepted German involvement in his Empire
because he attached importance to this Islamist policy against increasing nationalist ideas among
his Muslim subjects of the Empire from very different ethnic backgrounds at the time.
111
claimed that Pan-Islamist policies of the Sultan could turn to an important
Ottoman weapon against the foreign interventions and activities in the strategic
territories of the Empire with the German support.466 It can be considered that
Abdulhamid II aimed to develop a new political tool through this policy for his
political maneuvers in international struggle by using rich strategic locations and
resources of the Empire as instruments to attract German interest and support.
As a result of many confidential searches, like Paul Graskopf did in this region,
Germany was well aware of rich underground resources of the Mosul and
Baghdad provinces of the Ottoman Empire.467 Although Abdulhamid II knew that
Germany was after oil reserves of the Empire, he was still eager to give the
railway concessions to Germany. The reason behind this was Germany would
pass rail lines through all of Anatolia according to İlber Ortaylı, whereas, Britain
and France tended to connect the railroads only with the eastern Mediterranean
ports or the Persian Gulf.468
Accordingly, the Sultan considered that the establishing railways throughout the
Empire would provide many benefits in terms of modernizing the region. The
Empire would be strengthened from the military perspective with the increase of
the railways, for example, the immediate transfers of soldiers through the rail lines
would prevent rebels.469 Moreover, the agricultural products and underground
466
François Georgeon. Sultan Abdülhamid, 475.
467
468
If Mesopotamian railways were owned by England; the Sutan knew that a line would be drawn
over Egypt-Syria-Iraq-India, meaning that this region would be torn from the Ottoman Empire. He
was also suspicious of France's ambitions and activities in Lebanon. For this reason, he was very
eager to give railway concessions to Germany. See İlber Ortaylı, ―Abdülhamid..., 79. Also look at
Sultan Abdülhamit, Siyasi Hatıratım..., 79.
112
resources of the Empire would be shipped to the markets.470 As a contribution to
the argument, while explaining the benefits of establishing railways all over the
Empire and Earle noted that the Sultan was ―carrying with them heavy subsides,
because he hoped the new railways would strengthen his authority within the
Ottoman Empire and improve the political position of Turkey in the Near East.‖471
For this, it can be understood that the Sultan wanted to use oil resources for
strengthening the Empire by establishing closer ties with Germany and taking
advantage of the capabilities of efficient and enthusiastic German companies like
Deutche Bank.
As Kenneth W. Thompson and Roy C. Macridis discussed in 1967, natural
resources could be used as an economic apparatus to achieve a foreign policy
goal,472 as Abdulhamid II used oil resources of the Empire.473 Even if the Sultan
gave Mesopotamian oil concessions to Germany in return for the alliance, the
Germans could not be successful in using these extensive oil concessions at the
end. As Lord Curzon stated on the policies of Abdulhamid II ―there was no axiom
dearer to the Sultan’s heart than that charity not only begins, but stays, at
home.‖474
469
470
Enver Ziya Karal, Osmanlı, 175.
471
472
Cited in Behice Tezçakar, ―Erzurum- Pülk,‖ 125.Kenneth W. Thompson, Roy C.
Macridis.―Comperative Study of Foreign Policy.‖ In Foreign Policy in World Politics (New
Jersey: 1967), p. 7.
473
See Marian Kent. Oil and Empire, 9.
474
113
4.6. 1 Abdulhamid II’s Oil Policy
Abdulhamid II as a ―sensible sovereign‖475 approached the oil concession demands
of France and Britain in a tolerant way as part of his balanced policy in
international relations because he did not want to jeopardize relations with these
countries. Since France and Britain were rivals with Germany, he also tried to keep
the relations with these powers as a counter balance against German intervention.
One of best examples to prove this was the oil concession demand of French
Monsieur Rozo in 1900. Instead of directly refusing the French concessionaire,
two and a half million francs (a very high amount) was specified by the Hazine-i
Hassa as drilling fee and Monsieur Rozo could not invest. Abdulhamid II created
reasons not to give oil concessions before they were not even materialized.
Britain merchants were exporting neft from Iran and the Sultan was supporting
these merchants through firmans to provide them safe passage from the Ottoman
lands to Iran.476 In one occasion, Ottomans helped a British oil operator by
repairing the road between Baghdad and Hanikin for his oil operations in the
Iranian border.477 These prove that the Sultan tried to keep good relations with
Britain as required in international balance politics while seeming to support
British oil activities in the region.
475
Engin Deniz Akarlı. Abdülhamid II, 8.
476
For the document, see Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer. Osmanlı’da Petrol,
pp. 222–223.
477
pp. 198 and 199.
114
Some scholars claim that the Ottoman Empire was late to industrialize, which was
the reason of its insufficient technology in oil exploration and utilization. For this,
the Empire could not implement a compherensive oil policy. Hikmet Uluğbay
claims that there was no oil policy of the Ottoman Empire on a state level; all
implementations related the Ottoman oil reflects just Abdulhamid II’s private and
personal preferences.478 However, the Sultan tried to benefit from these oil
reserves in many rational ways could be an example for actions of a conscious oil
policy. For instance, revenues from oil operations of Ferecik town of Edirne in
1904 was pleged to use as source of income for building Hejaz railway.479
Accordingly, Hazine-i Hassa got the concession rights for operating oil, lignite
and tar reserves of Ferecik town of Edirne in 1905.480 This also shows that
Ottomans reached an enough capability in that year to operate an oil field both
financially and politically.
In that regard, Abdulhamid II implemented his oil policy in order to create the
suitable environment or enough level of facilities for a national oil business by
taking advantages of the rivalries of the major powers of Europe. For example, he
granted a forty-year concession to an Ottoman merchant named Hacı Bekir to
build a tin barrel factory to preserve refined neft in Izmir in 1903.481 This proves
that Ottomans succeded to refine neft and they were planning to preserve it within
a certain program and schedule. Izmir as a seaport was a very important trade
478
Hikmet Uluğbay, İmparatorluktan, 22.
479
206 and 207.
480
236 and 237.
481
COA. Y.PRK. AZJ. 47/47.
115
center of the Empire so this refined oil could be traded to Europe with these tin
barrels through ships from the port. These efforts indicate that Ottomans were
preparing for forming oil related business in those years.
Abdulhamid II tried to follow all oil related activities and issues of Europeans
both in the Ottoman Empire as it was mentioned for all operations of these powers
especially Baghdad, Mosul and Basra provinces of the Empire. For example, there
is an archival report of 1905 for oil related issues of Russia submitted to the
Ottoman Empire.482 The Sultan learned the following through the report:
petroleum prices doubled in Russia in 1905 due to an oil shortage. This caused the
costs of trade to increase because Russian factories and locomotives used oil even
in that time. In addition, the Sultan appointed an official to follow the third
International Oil Conference of 1907 in Bucharest by emphasizing that the result
of the conference should be submitted to his office.483 These indicate that the
Sultan was fallowing closely the developments related with oil around his realm.
During his reign, Abdulhamid II did not lose the control upon any of oil lands all
over the Empire and preserved the solidarity of the Empire. Moreover, ―his reign
saw respectable achievements in the construction of highways, waterways,
railroads, the telegraph, and other infrastructural public works to establish a
modern financial infastructure.‖484 The Empire got rid of the heavy influence of
foreign debt burden and the problem of budget deficit was taken care of; general
482
For these documents, see Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer. Osmanlı’da
Petrol, 218–219 and 222-223.
483
See Abdurrahim Fehimi Aydın and Ahmet Zeki İzgöer. Osmanlı’da Petrol, 240–241.
484
116
public education, public security services, military, governmental structures and
institutions were improved and expanded.485 Therefore, it can be concluded that
the oil policy of Abdulhamid II within the scope of his balanced policy, worked
properly against the foreign interventions.
485
117
CHAPTER V
CONCLUSION
Oil as a black inflammable matter was a well-known resource used in many
different civilizations for various purposes throughout history. However, April 16
of 1855 was a very important date for oil history of the world: Professor Silliman
proved the great potential of oil as an energy resource for the commencement of
commercial petroleum business in the world. Especially after the late 19th century,
the increasing use of oil triggered an international rivalry to control the large oil
reserves of the world. The point is that there were obvious reflections of this,
which could be clearly seen in Ottoman lands because some of the most oil
regions were part of the Ottoman Empire at the time. Abdulhamid II was aware
that the Empire had great oil reserves, and that European Powers were in pursuit
of these sources.
Ottoman concessions were both the cause and the result of foreign aspiration
towards the Ottoman resources from the beginning of the 19th century to the
Hamidian Era. The Ottoman oil, which was utilized in many areas from
shipbuilding to weaponry for centuries in the Empire, became a subject of the
Ottoman concessions during the reign of Abdulhamid II after the discovery of oil
as an important energy resource.
118
The financial and political conditions of the Ottoman Empire were not appropriate
to operate its oil resources. In that regard, Abdulhamid II granted oil concessions
to the Ottoman subjects who were closely related to the state in order to operate
oil reserves of the Empire. These concessionaries were Ottoman public officials or
entrepreneurs who were under the Sultan’s supervision. Especially Ottoman oil
resources around Van, Edirne, Iskenderun and Erzurum regions were assessed by
some Ottoman subjects for that purpose. Nevertheless, the expected returns from
these efforts could not be reached for Ottomans.
On the other hand, the increasing demand for the oil concessions by local or
foreign entrepreneurs over the Ottoman oil resources created a need to make
necessary legal adjustments for the pupose of preserving the oil resources of the
Empire by law enforcement because Ottoman mine regulations held in 1861 and
1869 were premature attempts for this purpose. Therefore, the regulations of 1887
and 1906 generally dealt with the Ottoman mining concessions and
concessionaries to protect the strong position (authority) of the Sultanate over the
mines of the Empire. In addition, 1906 law is important for its regulations of
custom fees for mines and oil products. The Ottoman authorities were insistent on
the increasing tax rates for mines especially oil in the customs and they succeeded
in it despite the foreign pressure at the time.
My research shows that there was an early international rivalry to control the large
oil resources of the Ottoman Empire amongst Germany, France and Britain. These
Western powers had their own agendas and purposes over the Ottoman oil
resources. In response to this, Abdulhamid II did not abolish the oil concession
119
demands by foreigners or embrace these demands because he tried to implement
an Ottoman oil policy in order, not to lose Ottoman petroleum reserves through
undervalued concessions to the Great powers of Europe. Therefore, their
interaction or influence over the Ottoman oil resources and concessions remained
limited by preferences of the Ottoman oil policy in the scope of Abdulhamid II’s
balanced policy in international relations. Since Britain and France had a
politically and financially strong positions in the Empire, The Sultan hesitated to
grant the oil concessions to these states to keep international balance in terms of
foreign intervention to the Empire. Nonetheless, he approached the oil concession
demands of France and Britain in a reasonable way because these countries had
many investments in the Empire and he tried to keep the relations with these
powers as a political equilibrium against German intervention.
The study also shows that Abdulhamid II was eager to accept the German
involvement in the affairs of the Ottoman Empire because establishing closer
relations with Germany as a new and dynamic power of Europe would help him to
balance other powers. Baghdad Railway concession, for instance, enabled
Germany to obtain oil concessions and reach oil resources of the Empire. These
projects helped the Sultan to create a sphere to carry his oil policies without the
financial burdens. This was an essential aim of the Ottoman authorities for the
financial independence at the time.
My contention is that Abdulhamid II, in the words of E. Deniz Akarlı, as a
―sensible sovereign‖ and ―image maker‖, in the words of Selim Deringil, tried to
use the Ottoman oil resources and concessions against the foreign intervention as
120
instruments or bargaining chips of his international politics. It can be concluded
that there was an Ottoman oil policy, which considered and employed the Ottoman
oil concessions within the scope of Abdulhamid’s ―balanced policy.‖
121
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APPENDIX
Map 1. A Map of Oil Concession Regions in the Ottoman Empire between
1877 -1922 and Regions Evliya Çelebi visited between 1647 and 1666
Source: Published in Volkan Ş. Ediger, Osmanlı’da Neft ve Petrol: Enerji

Ekonomi-Politiği Perspektifinden, 101.
130
Map 2. A Map Showing Some Oil Reserves in Mosul by Mine Engineer Arif
Bey of Hazine-i Hassa
Surce: Published in Arzu Terzi. Bağdat-Musul'da paylaşılamayan miras : petrol

ve arazi, 1876-1909. n.p.: İstanbul : Truva, 2007, 237. COA. HH. THR. 233/47.
131
Map 3. A Map of Oil Reserves in Mosul and Baghdad by Mine Engineer
Graskopf of Hazine-i Hassa
Surce: Published in Arzu Terzi. Bağdat-Musul'da paylaşılamayan miras : petrol

ve arazi, 1876-1909. n.p.: İstanbul : Truva, 2007, 239. COA. HH. THR. 239/60
132
Map 4. A Map Showing the Railways and Oil Fields Being Constructed and
Built in the Asian Region of the Ottman Empire
Source: COA. HRT.H. 961. 1915.
133
5. The Document Granting Concession to Hazine-i Hassa for Oil Search
within Mosul
Source: Publishedin Demir, İsmet, et al. Musul-Kerkük ile ilgili arşiv

belgeleri,(1526–1919. Haz. İ.Demir... [v.b.];Tran.N.İlemin, N.Büyükkırcalı.
Ankara: T.C.Başbakanlık Devlet Arşivleri Gn. Mdl., 1993 ., 1993. Bilkent
University Library Catalog, 531.
134
6. The 1904 Agreement
135
Source: Published in Marian Kent. Oil and Empire: British Policy and
Mesopotamian Oil, 161 and 162.
136
7. Operational Issues of Oil Concessions Granted to Hazine-i Hassa
Source: COA. Y. PRK. HH. 35/44.
137
8. A Concession Document for Building a Tin Barrel Factory to Preserve
Refined Oil in Izmir in 1903
Source: COA. Y.PRK. AZJ. 47/47.
138

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ENES YAVUZ

OTTOMAN OIL CONCESSIONS DURING

İhsan Doğramacı Bilkent University

The Graduate School of Economics and Social Sciences

In Partial Fulfillment of the Requirements

II. ABDÜLHAMİD DÖNEMİ (1876–1909) OSMANLI

Bu tez, II. Abdülhamid Dönemi (1876–1909) Osmanlı petrol imtiyazlarını ve bu

Anahtar Kelimeler: II. Abdülhamid Dönemi, Osmanlı Petrolü, Osmanlı Petrol

Firstly, I wish to express my deepest gratitude to my supervisor Asst. Prof. Dr.

CHAPTER II: HISTORICAL BACKGROUND……………………………...... 17

CHAPTER III: HISTORY Of OIL IN THE OTTOMAN LANDS……...……... 41

CHAPTER IV: OIL CONCESSIONS IN THE HAMIDIAN ERA………….… 67

CHAPTER VI: CONCLUSION ……………………………………………… 118

TABLE 1. World Oil Production between 1857 and 1940.……......................... 27

considerable role as a strategic factor in world affairs.1 Masses have always

needed or benefited from energy resources to enable them to produce in more

importance with developing technology and the industrialization of production.

Ottoman Empire became oil rich states.

nineteenth century, foreign travelers, missionaries, and military specialists

Accordingly, Abdulhamid II appointed some experts to examine in the lands the

competing with each other to gain political, economic, financial, commercial

Ottoman Empire with eager to establish good relations, emerged as a powerful

Abdulhamid II auhorized German interest and support in the local and

international affairs of the Empire,4 collaborating on international projects such as

resources of the Empire to establish a modern financial infrastructure within the

Empire. In that regard, the Sultan as a ―sensible sovereign‖5 was eager to

following moderate, reasonable and tolerant policies in the international relations.7

Muazzama) through their entrepreneurs asked the Ottoman authorities to obtain

rights to operate oil deposits which existed in large quantities in Mesopotamia9

and smaller quantities in Anatolia. However, oil as a new resource of energy

territories of Abdulhamid II to supply the energy need for the rapid

industrialization of the Western world. Therefore, the Sultan tried to develop an

Empire as bargaining chips in international arena, while modernizing his Empire

the changing nature of Ottoman concessions with the increasing foreign

intervention in the nineteenth century and I specifically indicate how Abdulhamid

Ottoman concessions especially during the sultanate of Abdulhamid II is

significant in order to demonstrate the structure of Ottoman oil concessions.

Accordingly, some academicians argue that Ottoman concessions turned to a

Europe within Ottoman Empire at the time.10

powers to mitigate European demands by using concessions as a bargaining tool.11

considerable achievements to modernize the Empire such as railroad and

Ottoman oil reserves.13

realization of the importance of oil resources in the minds of Ottoman authorities.

regarding the Ottoman oil concessions and policy.

to Germany in my study. It is efficient to evaluate Ottoman oil policy by

considering the Ottoman railway concessions to show other important apparatus

consequences of Abdulhamid II’s oil policy regarding oil resources and

concessions of the Empire as bargaining chips within his famous ―balanced

Archives, Cumhurbaşkanlığı Osmanlı Arşivleri (COA):

Bab-ı Ali Evrak Odası (BEO),

Cevdet Askeriye (C.AS),

Cevdet Belediye (C.BLD),

Cevdet Bahriye (C.BH),

Dahiliye Nezareti Muhaberat-ı Umumiye İdaresi (DH. MUİ.),

Dâhiliye Nezareti Tesri-i Muamelat ve Islahat Komisyonu (DH. TMIK),

Dahiliye Nezareti Mektubi Kalemi (DH.MKT),

Dahiliye Şifre Kalemi (DH. ŞFR),

Diyarbakır Ahkam Defteri (DAD)

İrade Meclis-i Mahsus (İ. MMS.),