the Anatolian Railway Company to explore for minerals and oil along a -wide strip either side of its proposed railway in Mesopotamia. On 28 June 1914, the Turkish grand vizier confirmed the promise of a concession to TPC, but the outbreak of World War I ended TPC's plans. When the Ottoman Empire was broken up in the aftermath of the war, the question of shareholding in TPC became a major issue at the 1920 San Remo conference, where the future of all non-Turkish and Arab-majority areas of the former Ottoman Empire were mostly decided. A rising demand for petroleum during the war had demonstrated to the big powers the importance of having their own sources of oil. Since one of the original partners of TPC had been German, the French demanded this share as the spoils of war. This was agreed by the San Remo Oil Agreement, much to the annoyance of the Americans who felt excluded from Middle Eastern oil and demanded an "open door". After prolonged and sometimes sharp diplomatic exchanges, U.S. oil companies were permitted to buy into the TPC, but it would take several years until the negotiations were completed. Oil found in 1927 TPC obtained a concession to explore for oil in 1925, in return for a promise that the Iraqi government would receive a royalty for every ton of oil extracted, but linked to the oil companies' profits and not payable for the first 20 years. The concession required the company to select 24 rectangular plots of each for drilling operations. During the 1925/6 season, an international geological party, comprising representatives of the shareholding companies together with an American contingent, conducted a wide-ranging survey of Iraq. Two wells were selected for drilling at Pulkanah and one each at Khashm al Ahmar, Injanah and Qaiyarah. Kirkuk was included as the sixth location. The well at Baba Gurgur was located by geologist J.M. Muir just north of Kirkuk. Drilling started, and in the early hours of 14 October 1927 oil was struck. Many tons of oil were spilled before the gushing well was brought under control, and the oil field soon proved to be extensive. Red Line Agreement and the creation of IPC The discovery hastened the negotiations over the composition of TPC, and on 31 July 1928 the shareholders signed a formal partnership agreement to include the Near East Development Corporation (NEDC), an American consortium