As much as I hate to admit it, this challenge is impossible.
3 minutes is by far not enough time, considering you cant use Mega Sonic, or go under the level, and you can get 2 hits per pass at the boss if your lucky, thats what? 45 seconds for the Boss alone? Plus about a minute and a half getting there. That leaves 45 seconds to beat Act 1 without touching the oil.
Sorry, no go :<
OO1 got smashed. :D