Business

Oil trading houses caught in Brazil corruption sting, reports Argus Media

Glencore, Vitol, Trafigura in around 160 deals for fuel oil, vacuum gas oil, bunker fuel and asphalt.

Published

8 years ago

December 21, 2018

Admin

Global energy and commodity price reporting agency Argus Media on Thursday (20 December) provided an industry update on the corruption investigation involving several oil trading and commodity firms with Petrobras:

Brazil's state-controlled Petrobras has temporarily suspended trading business with Switzerland-based Glencore, Vitol and Trafigura following allegations the firms engaged in widespread corruption.

Petrobras said the decision was made after reviewing the findings of federal prosecutors, who earlier this month executed search and arrest warrants in connection with the ongoing Lava Jato corruption probe.

Petrobras' announcement came on the heels of another set of charges for 12 individuals allegedly linked to bribes initiated by Vitol. Federal prosecutors said the scheme that favored Vitol in oil and fuel trading lasted at least five years, and may be ongoing.

Of the 12 people charged, three were intermediaries "who had the confidence of the executives of Vitol to foment the criminal scheme," five were former Petrobras traders and the remaining four were unidentified bribe collectors, according to the prosecutors.

"A criminal scheme involving the leasing of fuel storage tanks and several other trading operations entered into by Petrobras with Vitol, Glencore, Chemium and other trading companies is under investigation. There are indications of current criminality considering that the investigation covers two other employees of Petrobras, who were in still employed at the launch of 57th phase of the Lava Jato," prosecutors said.

Petrobras said it has requested "clarification regarding the measures adopted by the companies to investigate irregularities, cancellation of contracts and liability of individuals and legal entities involved, cooperation with the authorities and improvement of its integrity program."

A Glencore spokesperson declined to comment. Vitol could not be reached for comment. Trafigura has previously denied the allegations, saying it has a zero tolerance policy regarding corruption.

"The suggestion that Trafigura's current management knew that payments to an intermediary would be used to make improper payments to employees of Petrobras is not correct," the company said last week after federal prosecutors charged two former executives with corruption.

Federal prosecutors say the three companies made around $15mn in illicit payments to Houston and Rio de Janeiro-based Petrobras employees in 2011-14 for advantageous prices on around 160 deals for fuel oil, vacuum gas oil, bunker fuel and asphalt.

Federal prosecutors say the scheme involving other trading firms, such as Chemium, Mercuria and World Fuel Services, totaled around $31mn in bribes. The companies made no immediate public comment.

Last month, Petrobras brought a close to an independent committee that had been established in December 2014 to investigate the first corruption claims resulting from the historic Lava Jato probe. The company says the investigation into the claims against Vitol, Glencore and Trafigura will be carried out by its internal investigation committee.

All three accused companies have substantial trading operations in Brazil. Most recently, Glencore signed a deal to 78pc stake in Brazil's fourth largest fuel distributor ALE and Vitol has agreed to acquire a 50pc stake in distributor Rodoil.

Petrobras said the claims against Vitol were not related to its recent $1.53bn sale of oil- producing assets in Nigeria to a joint venture including Vitol.

"There is no evidence or suspicion of irregularities regarding the disinvestment process, nor any relation with the activities that were the focus of the 57th phase of Lava Jato," the company said in a note.

Petrobras says it is looking to recover more than R40bn ($9.7bn) in losses and fines related to the systemic kickback scheme that directly and indirectly cost the firm around $20bn.

The company has already recovered around R2.5bn, and says it is pursuing 16 civil actions with federal prosecutors and the attorney general covering around R10.9bn in losses and R31.2bn in possible fines.

Source: Argus Media
Photo credit: Argus Media
Published: 21 December, 2018

Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

17 hours ago

July 21, 2026

Admin

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

Published

17 hours ago

July 21, 2026

Admin

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Photo credit: Drew Beamer
Published: 21 July, 2026

LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

Published

17 hours ago

July 21, 2026

Admin

PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post.

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024.

Photo credit: Pacific International Lines
Published: 21 July, 2026