Malaysian oil plan fuels criticism

FIJI’S controversial decision to import oil from Malaysia has drawn criticism from the three oil companies operating in the country.

Shell, Mobil and BP have expressed concern that the oil is of inferior quality and will cause environmental problems.

The companies also said the range of oil products available in Fiji will be reduced under the new system.

Shell Fiji Ltd has already warned its customers of the possible problems and extra expenses involved in using Malay sian oil, and Fiji bus operators have indicated the higher operating costs could mean fare hikes.

However, a consultant to the Fiji

National Petroleum Company (FNPC),

Akuila Savu, said the oil company statements were self-serving and that they were condemning the new system even before it had begun to operate. The FNPC was formed by the government to import the oil, and shipments from

Malaysia will begin in April. Energy

Minister David Pickering also denied the new oil would be inferior.

Shell and Mobil based their remarks on technical assessments carried out on the new oil. Their findings were that diesel fuel brought in by the FNPC will have a higher sulphur content than fuel now available in Fiji, so it could cause extra wear on engines and higher exhaust emissions. The companies also assert that the new oil is heavier and will require extra modification.

Shell general manager Joe Mar said the project did not stand up to economic scrutiny. While none of the companies had been given financial details of FNPC’s proposed operations, the short comings were easily discernable, he said.

Mobil Oil general manager Geoff Zippel said the health implications of the high sulphur content should prevent the diesel fuel being used by vehicles.

The crude oil will be refined by Esso Singapore. Pickering said the refined products available from the FNPC would be within the range of specifications issued by the government. Following criticism, the new group has also under taken to supply all products currently available in Fiji. □