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"Oil for small machines. It can't be used for the large size machinery by itself."
Machine Oil is a key item in Resident Evil 3: Nemesis.
After picking up the oil and making the way back, the fire will start in the office due to the sparks, that igniting the oil on the floor.
The machine oil is obtained after successfully advancing through the STAGLA puzzle. Checking the storage with the oil, Jill can read the message: "It's a storage to maintain the temperature of the oil. Will you operate it?". "Nothing seems to be useful here" message appears after Jill has taken the item from the storage.