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01Oct92 UK: TRAFALGAR REPLACES STOCKBROKER BARCLAYS DE ZOETE WEDD.

Trafalgar House has replaced one of its stockbrokers because of a conflict of interest arising from its dispute with oil company Midland and Scottish Resources (MSR).Barclays de Zoete Wedd Securities is a financial adviser to MSR, which acted as client for the ill-fated Davy Emerald oil field contract. Trafalgar House believed there was a potential conflict of interest and last week chose UBS Phillips and Drew to replace BZW.The stockbroker is understood to have advised Trafalgar House directors before the Davy bid that there were no problems.City analysts estimate Trafalgar House will need to make a $20 million write-down on the Emerald Producer oil rig.The contract to convert the Ali Baba oil rig into an oil production facility was instrumental in the collapse of Davy, which was then taken over by Trafalgar House.But Trafalgar House miscalculated how much it would cost to complete the contract.MSR has failed to pay for the rig which Trafalgar House has been forced to lease to the oil company to recoup some costs.This week Sir Eric Parker was expected to tell former Davy shareholders that the second 45p a share Davy payment will not be released because of problems with the Emerald contract.