Ross Sheil, Staff Reporter

The Petroleum Corporation of Jamaica (PCJ) could decide to end its relationship with Dutch oil company Trafigura at its board meeting today.

Group Managing Director Ruth Potopsingh would not say whether the PCJ might be swayed by the controversy over the Dutch oil company's $31 million 'gift' to the governing People's National Party (PNP), which her predecessor Dr. Raymond Wright had said might be a factor in their deliberations. Mrs. Potopsingh said it was not "definite" that a decision would be taken.

In separate news, a spokesman for the Dutch Justice Ministry told The Gleaner that it had not yet opened an investigation into the 'gift' but was currently "checking facts" in response to reports in the Jamaican media.

Trafigura, on behalf of the PCJ, has traded Nigerian oil made available by the Nigerian National Petroleum Corporation (NNPC) since 2000 but no new contract has been signed since PCJ oil liaison agent, Colin Masters, president and chief executive officer of Atlanta-based consultants GoodWorks International, secured the latest supply from NNPC on September 20.

Satisfactory relationship

Mrs. Potopsingh echoed Dr. Wright's view that the relationship with Trafigura had so far been satisfactory for PCJ.

"We are very confident that PCJ's contract with Trafigura is above board. We have a commercial arrangement. The commercial arrangement has worked well in the past and we will review it," she said.

However, Dr. Wright has said that given the nature of PCJ's contract with Trafigura, it would be unable to demand access to its books. PCJ had audited Trafigura's books previously, after the first year of their relationship amid concerns of cost-padding.

PCJ then switched to a flat-fee arrangement which, said Dr. Wright, is more transparent, indemnifies them against loss and ensures greater profit. However, Opposition Leader Bruce Golding who revealed the Trafigura 'gift' in Parliament last week, has consistently maintained that the agreement should be reviewed.

Mr. Golding contends that PCJ should be making US$6 per barrel instead of the US12 cents currently being paid by Trafigura. However, Dr. Wright responded that such an expectation is unrealistic given price instability and margins in the world oil market.

Also yesterday, the Trafigura-chartered ship which discharged toxic waste that killed eight people in the Côte d'Ivoire was allowed to leave an Estonian port and sail to a treatment plant to unload its cargo. Two Trafigura executives have been arrested in the West African country in connection with the incident.

Dutch prosecutors have already opened an investigation into the incident which earlier forced the resignation of the Ivorian Cabinet.

Trafigura did not return telephone calls by The Gleaner yesterday.