Financial Times article that claimed that he had become "the biggest obstacle to construction of an oil pipeline from the energy-rich Caspian Sea to the West.'' The denial came as Lloyd's List reported that the US oil company, Chevron, said that they were cutting back by five percent on its project to tap oil fields in Kazakhstan in current operations.

Mr. Deuss, through a local spokesman, declared that "no conflict exists between Chevron and John Deuss.'' Both the FT and Lloyd's List report that negotiations to complete a pipeline through Russia to the Black Sea port of Novorossisk have run into problems following Chevron's refusal to guarantee the line's total $1.4- billion estimated cost.

But Chevron reportedly has difficulty paying such costs while losing a large portion of the transportation revenues to an oil company owned by the Government of Oman, a company that is headed by Mr. Deuss.

The FT claims that the Omani interest wants 33 percent of the equity stake and that Mr. Deuss, acting for the Oman oil concern, wants to put up no money for the construction costs.

Although Mr. Deuss is a director of the CPC Pipeline Project and the President of the Oman Oil Company, he is not believed to be an investor of either.

In response to written questions from The Royal Gazette , Mr. Deuss replied: "Chevron has expressed an interest in joining CPC as a shareholder and discussions on Chevron's potential participation are ongoing. Chevron has no obligation to join and neither has CPC an obligation to accept Chevron as a shareholder unless mutually acceptable terms can be agreed between the parties. '' "The implementation of the CPC Pipeline Project is not dependent on Chevron joining the consortium as a shareholder.'' Lloyd's List quoted Chevron chairman, Mr. Kenneth Derr, as describing the negotiations as being "all garbled up'', although remaining optimistic about the future talks.

Mr. Derr also said: "So far we haven't been able to work out the details, but it will get worked out. It has to.'' Chevron is already investing a billion dollars to the end of this year in pumping oil out of the area. They would seek to go into partnership with Oman and oil companies from Kazakhstan and Russia.

Lloyd's and the FT report that Kazakhstan is anxious to have the matter resolved and according to the FT, have set a June 1 deadline.

Mr. Deuss said that it is incorrect that a June 1 deadline has been set by that country's authorities.

The FT stated that the World Bank declined to take part in financing the pipeline, but Mr. Deuss responded: "It is absolutely untrue that the World Bank has refused to take part in the financing of the pipeline.

"The World Bank has not been asked to provide financing for the consortium and considering the project financing approach which has been adopted by the board of directors of CPC, it is not likely that the World Bank will be solicited to take part in the CPC financing.''