ANGLO-IRANIAN OIL PROJECT

Wanganui Chronicle, 25 February 1947, Page 5

ANGLO-IRANIAN OIL PROJECT

NO OPERATIONS IN N.Z. FOR TWO YEARS (P.A.) Auckland, Feb. 24. The British Petroleum Company of New Zealand, which had been formed under agreement between the Government and Anglo-Iranian Oil Com. pany, would not be working fully for at least two years, said Mr. N. B. Fuller, director of the Nev/ Zealand (Company and manager of the Continental branch of. the distribution department of the Anglo-Iranian Oil Company. Mr. Fuller came to the Dominion five months ago to negotiate with the Government about the new company and will fly to Australia en route for England. Sites for ocean installations at Auckland, Wellington, Christchurch, and Dunedin were being sought by the company, said Mr. Fuller, Considerable difficulties existed so far as a site at Auckland was concerned, but he had every hope that they would in due course be overcome. "Although the New Zealand Government holds 51 per cent, of the capital, the British Petroleum Company will be managed on purely commercial lines,” said Mr. Fuller. "As there appears to have been considerable misunderstanding regarding the future attitude of the company toward the retailers of oil products, I wish to assure retailers that there is no, and never has been any, intention of selling through Government-owned petrol points, and that the company will sell its products on the usual competitive basis.” Little would be known for at least a year of oil prospects in New Guinea, where an intensive search was being made by the Anglo-Iranian Oil Com. pany in collaboration with the Vacuum Oil Company and the Australian Government, said Mr. Fuller. So far as could be seen the prospects were what were called neutral, but if oil were found in sufficient quantities it would give New Zealand a supply almost at her back dooi.

The major source of oil for his company, which had just been opened, was at Kuweit Island, on the western side of the Persian Gulf, which geologists considered to have one of the greatest oil reserve of any field in the world. The oil deposits there were estimated to be 6,000,000,000 barrels or about 1,000,000,000 tons. The field started to produce oil in June last year, and had the advantage over other Persian concessions of being well away from any possible trouble centre. Increasing output was also coming from wells of the Burma Oil Company, the mother organisation of Anglo.lranian, said Mr. Fuller. Some petrol was produced for local military needs before the war against Japan finished, but the fields had been seriously damaged and might never fully recover. They had been smashed up under the scorched earth policy when the British retreated in Burma Thev were partly repaired by the Japanese and damaged again by Allied bombing. and were put out of action again by the Japanese when they withdrew in their turn.