director of an international oil company, it was revealed yesterday.

Sir John agreed to become a director of the multi-million dollar company, Caspian Pipeline Consortium, after it decided to locate in Bermuda.

His role in the venture, which aims to pump oil from a landlocked region near Russia, has been questioned by the Opposition on the grounds of conflict of interest.

But yesterday a spokesman for the government of Oman, one of the members of the consortium, defended the appointment.

"In Bermuda law each company incorporated in Bermuda must have two local directors,'' said the spokesman.

The fact that the company had recruited people with "superb reputations'', like Sir John and Bank of Bermuda president Mr. Donald Lines, showed the importance of the consortium.

"It's an indication of how important these gentlemen think it is.'' The spokesman said other directors included government representatives from the countries making up the consortium. So far Oman, Russia and Kazakhstan are members, with Azerbaijan signed up in principle.

Kazakhstan's deputy prime minister was chairman of the board and the deputy chairman of the Russian government was another director, said the spokesman.

"There has been no discussion of fees and there is no plan to pay fees,'' he said.