John Swan's direct involvement in a multi-million dollar oil deal.

Sir John and Bank of Bermuda president Mr. Donald Lines last week agreed to become directors of the Caspian Pipeline Consortium -- a company incorporated here to transport oil from the landlocked Caspian region in the former USSR to world markets.

The deal, involving Russia, the republic of Kazakhstan and the Gulf state of Oman, was partially arranged by local oil magnate Mr. John Deuss and closed in Bermuda at Tom Moore's Tavern on Thursday.

Oman Oil Company, which will arrange all financing for the construction of the pipeline that is expected to cost between $700 million and $1.5 billion, depending on the route chosen will also be incorporated here.

But last night Shadow Finance Minister Mr. Eugene Cox said Sir John's directorship of the CPC "...must inevitably lead to a conflict of interest''.

"We, in the Progressive Labour Party are appalled that the Premier has by accepting this appointment put himself in a role where his duty to the people of Bermuda and his own self-interest are on a collision course,'' Mr. Cox said.

"The Premier has a collective responsibility to Bermuda. He, as the leader of the Government, serves as a trustee of Bermuda's interests. He is therefore in a position of some considerable power and responsibility. He must not abuse that trust and he must be held accountable.'' Warning that Sir John was placing himself and Bermuda' interests' in a "vulnerable'' position, he said "there are more than enough able and competent people in Bermuda who would be worthy appointees to the board of directors of the Caspian Pipeline Consortium without the Premier having to be so directly involved''.

"The Government policy seems to be that the new code of conduct is to favour self-interest over national interest,'' he said. "The past record of Government would attest to this.'' Sir John could not be reached for comment last night. PHOTO Mr. Eugene Cox.