ABSTRACT
The circumstances that set the pattern for the 1971 Teheran and Tripoli agreements inevitably and inexorably led to developments that further deteriorated relations between the oil producing countries and the concessionaire companies. The Tripoli agreement provided for a ninety-cent increase in the posted price; this increase was based on a basic increment in price and consideration for the preferred sulphur-light quality of Libyan oil as well as its geographic location. On the basis of the Tripoli Agreement, Iraq began to discuss with the Iraq Petroleum Company a posted-price increase for the oil of the eastern Mediterranean outlet and also demanded ninety cents. In the middle of June 1972, the shah announced a new program for his country's oil industry: maximum output, maximum security of supply, and stability of conditions for the period of the existing agreement with the consortium, which was to expire in 1979.
