American Firm Offers to Supply Israel with More Crude Oil

The director of an American firm which owns an Israel oil company said here today that the company could supply crude oil to the Israel market in larger quantities than its present quota of 25 percent of local requirements. He said that Sonol plans to establish a plant for refining an processing of imported bulk lubricants.

Lawrence Spirer, director of L. Sonneborn Associates of New York, parent firm of the Sonol Oil Company, made this announcement during a visit here which he said was not connected with the impending withdrawal from Israel sales activities of the British-owned Shell company, Sonol, Shell and Delek are the three firms now selling in Israel.

Meanwhile, it was learned here today that Isaac Wolfson, British department store magnate, and the Israel Government have come to an impasse in Mr. Wolfson’s negotiation to take over Shell oil interests in Israel. The impasse is caused, it is understood, by three major problems:

If Israel’s insistence on receiving crude oil from certain sources. 2. Mr. Wolfson’s insistence on operating conditions more favorable than those under which Shell worked Shell claimed these conditions contributed to an unprofitable operation. 3. The ways in which Mr. Wolfson proposes to finance his purchase of all Shell installations and petroleum supplies–exclusive of the Haifa refinery–in Israel.

Reportedly, a satisfactory solution could be found for the first two problems, but not the third. Among other proposals Mr. Wolfson has put forward is that the Israel Government grant him a loan toward the purchase price. The government has turned thumbs down on this proposition.