and marketing opportunities in Asia.

CXO is 60 percent-owned by Texas-based Caltex Petroleum Corporation, which operates in 58 countries throughout the Eastern Hemisphere, and 40 percent by Oman, whose overseas interests are represented by Bermuda resident Mr. John Deuss.

CXO's first business step will be to participate with the Petroleum Authority of Thailand (PAT) in a US$1.9 billion, 130,000 barrels per day refinery in Map Ta Phut, Thailand.

Yesterday, senior officials involved in the deal met at the Bank of Bermuda's executive offices in Hamilton to sign a Preliminary Memoranda of Understanding for the venture.

Among the party was Oman's Minister of Petroleum and Minerals, H. E. Said Bin Ahmed Al Shanfari; Mr. Deuss, who is president of Bermuda-based Oman Oil Company (OOC); Caltex chairman, president and CEO Mr. Patrick Ward; Caltex vice-president Mr. G. J. Camarata and Bank of Bermuda president Mr. Donald Lines, who is a director of OOC.

Mr. Deuss, who rarely grants interviews, did not answer questions put by The Royal Gazette .

Caltex chairman Mr. Ward, though, said Bermuda was the ideal domicile for the new venture because of its location, professional environment and tax advantages.

In a prepared press release, Mr. Al Shanfari said the formation of CXO was the first step in the new alliance between the Government of the Sultanate of Oman and Caltex, which is owned by American petroleum giants Chevron and Texaco.

Mr. Al Shanfari said: "This new strategic alliance represents an important expansion of the already significant ties between the Sultanate of Oman and Caltex in the petroleum refinery industry.'' Mr. Ward added: "We believe this new relationship will significantly enhance our corporate opportunities.'' They will co-operate in activities and projects in which both parties have a mutual interest in Caltex's area of operations.

Oman will support the thai refinery by providing up to 80,000 barrels per day of Oman Export Blend Crude Oil.

Caltex and PAT will share in the offtake and marketing of refinery products for the Thai domestic market.

In addition yesterday, Oman and Caltex signed a Memorandum of Understanding to conduct a feasibility study on a new refinery in India. As currently contemplated, the refinery would have an initial capacity of six million tons per year and would be jointly owned with the Government of India.

CXO is the third recently-created Bermuda-based company in which the Government of the Sultanate of Oman holds an interest.

In a press release, Mr. Deuss said: "An increasing number of major international companies recognise Bermuda as the preferred choice for the domicile of corporate headquarters.

"As such, Bermuda can look forward to continued positive growth of its offshore business.'' Mr. John Deuss.