OW Bunker Scandal Causes Only ‘Minimal Disruption’ in Singapore -UPDATE

Photo credit: OW Bunker
Photo credit: OW Bunker

The Maritime and Port Authority of Singapore (MPA) has determined that there will be only minimal disruption to bunker supply in the Port of Singapore as a result of the OW Bunker fraud scandal and subsequent bankruptcy of the company.

According to the MPA, there are currently more than 60 bunker suppliers in Singapore, and OW Bunker Far East (Singapore) Pte Ltd accounted for less than three percent of the 42.6 million metric tonnes supplied in Singapore in 2013.

MPA says it is working with the industry and the industry associations to mitigate any potential impact on bunkering operations in Singapore.

To address any concerns, however, MPA says it will be hosting open dialogue sessions along with the Singapore Shipping Association (SSA) and the International Bunker Industry Association (IBIA). MPA will also work closely with the various stakeholders to ensure that bunkering operations in Singapore continue as smoothly and normally as possible.

Update: A dialogue session with close to 50 companies from the Singapore Shipping Association (SSA) this week has confirmed the MPA’s findings that there has been no report of disruption to bunker supply and bunkering operations in Singapore.

“The bunkering industry here is a well-regulated one. While I urge my members to seek professional and legal advice as necessary, I also hope that those affected by this event would remain calm and not resort to knee-jerk reactions which may rock the stability and reputation of Singapore’s bunkering industry. My Association will be working closely with MPA to ensure that there would not be any unnecessary disruption in bunker supply and operations here,” said SSA President Mr Patrick Phoon.

Said MPA Chief Executive Mr Andrew Tan, “This has been a useful session for the shipping and bunkering community to come together to understand the current situation and to discuss practical steps forward. MPA will continue to work closely with SSA to manage the situation. We will also work with our licensed bunker suppliers to minimise any disruption to bunkering operations in Singapore.”

As gCaptain reported last week, Danish marine fuel supplier OW Bunker A/S filed for bankruptcy shortly after discovering an alleged $125 million bunker fraud scandal at its Singapore-based subsidiary Dynamic Oil Trading (DOT). The company has since turned over two senior level employees of DOT to the Danish police. The discovery of the fraud sent traders and shipping companies scrambling to source fuel and take over supply contracts.

The list of MPA licensed bunker suppliers can be found on MPA’s website: LINK

Full Coverage: OW Bunker Scandal