May 26
First Major Oil Strike in the Middle East
A determined British exploration team operating under William Knox D’Arcy’s 1901 concession finally struck commercial quantities of oil in southwestern Persia when Well No. 1 erupted at Masjed Soleyman in the early hours of May 26, 1908.
Summary
British prospector William Knox D'Arcy had secured a concession to explore for oil in Persia years earlier but faced repeated setbacks and near bankruptcy. After persistent drilling at Masjed Soleyman, a gusher erupted from Well No. 1 in the early hours of May 26, 1908. The discovery yielded commercial quantities at Maidan-i-Naftun, later renamed Masjed Soleyman. The find prompted formation of the Anglo-Persian Oil Company and shifted global attention to Middle Eastern petroleum reserves.
Context
By the turn of the twentieth century, the Qajar dynasty in Persia faced chronic financial pressures and sought new sources of revenue through foreign concessions. Surface oil seeps had long been known in the Zagros Mountains of Khuzestan province, yet no commercial production existed anywhere in the Middle East. William Knox D’Arcy, an Englishman who had made his fortune in Australian gold mining, obtained a sweeping sixty-year concession in May 1901 that granted exclusive rights to prospect for petroleum across most of Persia.
What Happened
D’Arcy recruited George B. Reynolds, an experienced mining engineer, to lead the field operations. After disappointing results at earlier sites near the Iraqi border, Reynolds relocated drilling to the Maidan-i-Naftun anticline near the village of Masjed Soleyman. Work on Well No. 1 began in January 1908 amid harsh desert conditions, tribal tensions, and dwindling funds. On May 26, at approximately 4 a.m. and a depth of about 1,180 feet, the well encountered a high-pressure reservoir. Oil surged upward in a gusher that reached roughly fifty feet above the rig, awakening the camp with shouts and confirming commercial quantities for the first time in the region.
Aftermath
The discovery prompted immediate further drilling; subsequent wells at the same structure also produced strongly. D’Arcy’s syndicate, facing near-exhaustion of capital, secured additional financing from the Burmah Oil Company. In 1909 the partners formed the Anglo-Persian Oil Company to develop the field and construct export infrastructure, including a pipeline to a new refinery at Abadan.
Legacy
The Masjed Soleyman strike established the Middle East as a major petroleum province and directly led to the creation of what later became British Petroleum. It shifted global attention to Persian Gulf resources, shaped British strategic interests in the region, and laid the groundwork for the modern Iranian oil industry and the broader geopolitics of Middle Eastern energy throughout the twentieth century.
Why It Matters
The strike inaugurated large-scale oil production in the Middle East, laying the foundation for the region's modern energy economy, international oil politics, and the geopolitical importance of Persian Gulf resources throughout the twentieth century.
Related Questions
Who was William Knox D’Arcy and how did he obtain the Persian oil concession?
D’Arcy was a British businessman enriched by Australian gold mining; in 1901 he negotiated a broad sixty-year concession directly with the Qajar shah for exclusive exploration rights across much of Persia.
What challenges did the exploration team face before the 1908 discovery?
The team endured financial shortfalls that nearly ended the project, harsh desert conditions, outbreaks of disease, and negotiations with local tribes for protection and access.
How did the Masjed Soleyman find lead to the creation of the Anglo-Persian Oil Company?
The commercial strike demonstrated the concession’s value, attracting fresh capital from Burmah Oil; the two entities formed the Anglo-Persian Oil Company in 1909 to develop production and exports.
Why is the 1908 discovery considered the start of large-scale oil production in the Middle East?
It was the first well in the region to yield sustained commercial volumes, prompting systematic development, infrastructure, and international investment that transformed the area into a global energy center.
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Sources
- The First Oil Field in the Middle East, American Association of Petroleum Geologists. Accessed 2026-07-10.