role in facilitating the successful negotiation of the largest ever commercial deal between East and West.

Sir John said were it not for Bermuda-based OOC Ltd., headed by oil trader and Bermuda resident Mr. John Deuss, the $230 billion deal could have collapsed altogether.

"Once again Bermuda puts its footprint on international business,'' said Sir John from Washington, where he attended the signing of the deal between the Republic of Kazakhstan and Chevron Corp. at Blair House. Mr. Deuss was also present.

Sir John was to dine with US President George Bush last night at a private dinner at the White House. While in Washington, Sir John also met with Bermuda Government consultants to discuss proposed US legislation and its implication on the Island's all-important international insurance sector. Sir John is to return to Bermuda today.

"The Government of Kazakhstan went to the Sultanate of Oman and asked for their help,'' said Sir John. "John Deuss was brought in as the go-between, and it was his initiative that got the talks back on track.

"The significance for Bermuda is that it is the largest commercial deal between the East and the West, and Bermuda gets associated with it. This type of thing can result in additional business coming to the Island.

"This is an historic event, and Bermuda's role as in international financial centre is underscored. This is particularly important as we try to further diversify our economy.'' Indicative of the importance attached to the venture to develop the Tengiz and Korolev oil fields in western Kazakhstan was the location selected for the signing -- the treaty room of Blair House. It was the first time in 200 years that a commercial deal was consummated at the US government-owned building.

Attending the ceremony was Kazakhstan president Nursultan Nazarbayev, who this week made his first state visit to the US since Kazakhstan broke away from the former Soviet Union, and Chevron chairman Mr. T. Kenneth Derr.

The signing represented the culmination of four years of negotiations that at several times were on the verge of collapse. The deal is significant for it will provide more than $80 billion in net revenue to the newly independent republic that stretches from the Caspian Sea to China.

"Our journey to this point has been a long and sometimes difficult one,'' said Mr. Derr. "But the documents we've signed demonstrate the value of persistence by two parties who were both sincere in their commitment to establishing a commercial venture together.'' See signing photo on page 15 Under terms of the joint venture, the government of Kazakhstan will receive 80 percent of net revenues from the Tengiz and Korolev oil fields, considered among the richest in the world. Chevron will get the remaining 20 percent, estimated at $20 billion.

Oil industry officials will be keeping their eyes on the venture, considered the largest ever oil deal, as a possible model for similar agreements with other former Soviet republics.

A western oil company was brought in due to the high degree of difficulty in extracting oil from the Tengiz and Korolev fields characterised by high pressure and toxicity. Western technology and investment was also needed.

The final terms of the agreement were vastly different to what had been originally negotiated in Moscow by what was then the USSR government. As late as last July the Tengiz deal was fiercely attacked by the Soviet press which claimed Chevron would reap huge profits at Kazakhstan's expense.

Work by the joint venture -- to be called Tengizchevroil -- is expected to begin in January 1993 after an operating agreement is finalised and other details worked out, including a plan for an export pipeline possibly to the Black Sea.

Discussions were particularly sensitive, not just because of the size of the transaction, but also because of language and cultural barriers. There was also pressure that any final deal had to be considered favourable for Kazakhstan which is in desperate need for western investment.

Meetings were held in London in March between the two parties and Oman, represented by OOC Ltd. It was at this point that Kazakhstan "requested Oman to conduct detailed consultations on its behalf with the Chevron Corporation'', said Oman's Ministry of Petroleum and Minerals in a written statement issued from Muscat last week.

"These consultations after seven different meetings between Chevron and Oman on the one side and Kazakhstan and Oman on the other side over the period March 20 to May 7 resolved on a step-by-step basis the differences between the parties on financial, technical, legal, regulatory, and commercial terms culminating in the signing of the Principles of Cooperation on creation of the Kazakhstan/Chevron joint venture.'' This agreement was reached through so-called shuttle diplomacy with OOC Ltd.

officers flying between San Francisco, Houston, Paris, and Alma Ata in an effort to develop terms acceptable to both parties.

WARM WELCOME -- Premier the Hon. Sir John Swan and Lady Swan and President and Mrs. George Bush outside the white House last night. the Swans went to the white House for a private dinner witht he President following the signing of the historic oil deal between former Soviet republic Kazakhstan and Chevron Corp.