Following the assassination of Razmara , Hossein Ala was given the task of forming a cabinet , while the wave of strikes had swept oil workers in Khouzestan province . Hossein Ala , however , resigned on 27th of april 1951 and the Majlis gave its vote of confidence to Dr. Mossadegh as the new prime minister . The 9 point oil nationalization law written by the special oil committee , was approved by the legislative body on 29th April 1951 , and received the Shah’s endorsement on 30th of April , going into effect immediately after . The next day , Dr. Mossadegh’s cabinet presented its program to the Majlis . The National Iranian Oil Company ( NIOC ) was formed with a three member provisional board of directors , as the first step in the nationalization process . The board arrived in Abadan on 9th June 1951 . The next day the flag of Iran was posted on top of the company’s main office in Khorramshahr . The board had instructions not to obstruct Iran’s oil exports , and it agreed that tankers should continue to lift oil cargoes , in return for which they were to sign receipts , to allow for accounting at a later period . Oil tankers , which were either owned or leased by the company , refused to sign unconditional receipts . Thus oil liftings from Abadan came to a halt . Oil storages were filled , the Abadan refinery’s operations also came to stop , and the 4500 non-Iranian oil personnel resigned collectively . At the time there were 61500 Iranian and foreign workers employed by the company . Interruption of oil operations , halted revenues , and forced the government to pay the workers ‘ salaries.