Business

Singapore: DPPs appeal stricter sentence for ex-Lukoil fuel oil trader who exploited internal loophole

David John Kidd amassed losses of over SGD 1 million to Lukoil Asia Pacific Pte Ltd through multiple irregular trades with Transocean Oil over a four-month period in 2016.

Published

6 years ago

August 6, 2020

Admin

Singapore Deputy Public Prosecutors (DPPs) on Monday (3 August) submitted an appeal to the High Court of the Republic of Singapore for an increased jail term of David John Kidd, a 32-year-old male Singapore permanent resident and British citizen formerly employed by Lukoil Asia Pacific Pte Ltd (Lukoil).

A District Judge on 13 March 2020 sentenced Kidd, who started serving his sentence on 23 March 2020, to 36 weeks’ imprisonment; the DPPs are now appealing to the High Court to increase his jail sentence to 18 months (72 weeks), according to a court document obtain by Manifold Times.

Kidd was the sole trader responsible for a high sulphur fuel oil (HSFO) contract with Transocean Oil Pte Ltd (Transocean) between April and September 2016, where Transocean agreed to purchase 50,000 metric tonnes of HSFO on a monthly basis from Lukoil.

His job was to enter the trade into Lukoil’s internal computer system (the ETRM system) whenever Transocean made a HSFO purchase from Lukoil; the operation also required him to hedge the trade to cover Lukoil’s price exposure through the purchase of oil futures or swaps.

However, the DPPs noted Kidd entering the trades in an untimely manner on 18 occasions between April to July 2016 into the ETRM system.

“The delay allowed him to speculate on market conditions, to wait for a more favourable price to hedge the trade. He did so in order to gain a financial advantage for the contract, knowing this would translate into a better bonus for himself if the contract performed well,” they explained.

Kidd backdated the trade in the ETRM system without hedging the trades on the same day on each of the 18 occasions; the delay in performing the hedges caused losses to Lukoil totalling USD 755,260 (equivalent to SGD 1,024,208) for 17 of the trades.

He entered false mark-to-market (MTM) updates into the ETRM system in an attempt to cover the losses and created an impression that there would be future sales of HSFO by Lukoil at a profit; the activity in turn created a false impression of unrealised gains, which were then factored into Lukoil’s daily Profit & Loss statements.

“The net effect within the ETRM system was that the losses caused by the Respondent’s late hedges were effectively negated or mitigated by the false MTM updates. This helped conceal the losses incurred by the Respondent from Lukoil’s Risk department,” added the DPPs.

The legal team reasoned a stiff sentence will act as general deterrence to deter like-minded individuals from engaging in offences of a similar nature and recommended the court to adopt “an uncompromising stance in meting out severe sentences” to protect Singapore’s international recognition as a reputable trading and financial hub.

“Actions from individuals like the Respondent threaten Singapore’s reputation in the bunkering industry and a stiff sentence is therefore warranted to deter others from gaming the system,” they said.

To date, Kidd has not provided restitution to Lukoil.

The High Court has reserved judgment to a later date.

Photo credit: Manifold Times
Published: 6 August, 2020

Business

FLEX Commodities appoints Euwyn Tan as Senior Marine Fuels Trader in Singapore

Tan has experience across the marine fuels, bunkering and shipping markets, with a strong background in trading, procurement, commercial negotiations and developing relationships.

Published

21 hours ago

September 8, 2026

Admin

FLEX Commodities appoints Euwyn Tan as Senior Marine Fuels Trader in Singapore

Dubai-based bunker trading firm FLEX Commodities FZCO (FLEX) on Monday (7 September) announced the appointment of Euwyn Tan as its Senior Marine Fuels Trader based in Singapore.

Tan has experience across the marine fuels, bunkering and shipping markets, with a strong background in trading, procurement, commercial negotiations and developing relationships with shipowners and charterers across Asia and Europe.

Before FLEX, he was a Bunker Trading Manager in Propeller Fuels from 2023 to this month.

“Based in Singapore, Euwyn will play an important role in strengthening FLEX Commodities’ marine fuels trading capabilities and expanding our presence across the Asian market,” the company said in a social media post.

“We are delighted to have Euwyn on board and look forward to his contribution as we continue to grow our global trading business.”

Photo credit: FLEX Commodities
Published: 8 September, 2026

LNG Bunkering

Osaka Gas conducts Osaka Bay’s first STS LNG bunkering operation

Acting through Singapore-based marine fuel trading firm Integr8 Fuels, Osaka Gas supplied LNG bunker fuel to an LNG-fuelled PCTC operated by an overseas shipping company calling at the Port of Kobe.

Published

21 hours ago

September 8, 2026

Admin

Osaka Gas conducts Osaka Bay’s first STS LNG bunkering operation

Japanese energy company Osaka Gas on Friday (4 September) said it has successfully completed the first-ever ship-to-ship LNG bunkering operation in Osaka Bay, supplying LNG fuel to an LNG-fuelled PCTC.

The operation was conducted using SETO AZURE, an LNG bunkering vessel owned by Osaka Bay LNG Shipping Co Ltd, an affiliated company of Osaka Gas.

Acting through Integr8 Fuels Pte Ltd, a Singapore-based marine fuel trading company, Osaka Gas supplied LNG fuel to an LNG-fuelled PCTC operated by an overseas shipping company calling at the Port of Kobe.

Ship-to-ship bunkering will help ensure a stable supply of LNG fuel in the Osaka Bay area and support the development of the Port of Kobe as a Carbon Neutral Port.

In addition to ship-to-ship bunkering, Osaka Gas provides LNG fuel through truck-to-ship bunkering and port-to-ship bunkering. With capability covering all three major LNG bunkering methods, Osaka Gas provides flexible and reliable LNG fuel supply services to meet customers’ diverse needs.

The company said LNG bunkering infrastructure in Japan remains insufficient, highlighting the need to establish a stable fuel supply network to support the wider adoption of LNG-fuelled vessels.

Photo credit: Osaka Gas
Published: 8 September, 2026

Bunker Fuel

Bunker Holding, Dan-Bunkering to join USTC units at new Copenhagen hub

Employees from Bunker Holding, Dan-Bunkering, Global Risk Management, CM Biomass, Unit IT, Uni-Tankers, Selfinvest, and USTC will all be based together in a new shared USTC Hub.

Published

21 hours ago

September 8, 2026

Admin

Bunker Holding, Dan-Bunkering to join USTC companies at new Copenhagen hub

The owners and management of Danish-owned USTC have decided to consolidate the Group’s offices in the Greater Copenhagen area in a new shared USTC Hub, according to the Group on Monday (7 September).

Employees from Bunker Holding, Dan-Bunkering, Global Risk Management, CM Biomass, Unit IT, Uni-Tankers, Selfinvest, and USTC will all be based together in the new USTC Hub.

The lease will take effect on 1 December 2026, with employees and companies moving into the new hub in phases thereafter.

The chosen location is the brand-new Marmormolen development in Nordhavn, which will accommodate more than 150 workstations from across the Group’s companies under one roof.

The USTC Hub will provide better opportunities for the companies to connect and make the most of the possibilities that arise when independent businesses work in closer proximity. In that sense, the hub is a tangible expression of USTC’s approach: strong business acumen, a sense of cohesion and a keen eye for opportunities across the Group.

“In locations such as Houston and Singapore, we already have USTC Hubs where several of our companies are based together. This has created strong professional communities and valuable synergies across our organisation. We have therefore wanted to establish a similar concept in Copenhagen for some time. At the same time, the experience gained from our existing hubs will help us assess opportunities for additional hubs in other parts of the world where they make sound business sense,” said Nina Østergaard, co-owner and CEO of USTC.

The USTC Hub will span more than 3,000 square metres on the sixth floor of Marmormolen and will offer access to rooftop terraces as well as a range of shared facilities. This will provide an ideal setting for both formal and informal interactions across companies and teams.

According to Østergaard, however, the ambition is not to make the companies more alike.

“The hub is intended to be a platform for closer collaboration and knowledge sharing, but the aim is not to make our companies the same. Quite the opposite. Their differences are an important part of our strength. Each company has its own capabilities and direction. But by bringing people closer together, we create better opportunities to learn from each other, build bridges and make better use of the strengths that exist across our organisation,” said Østergaard.

The establishment of the USTC Hub will also support USTC’s ambitions for continued growth while creating a more attractive professional environment for employees.

“We are a Danish Group with offices around the world, and we have ambitions to continue developing. That makes it important for us to have a strong base in Copenhagen. It brings us closer to businesses, professional communities and some of the capabilities we will need in the future. At the same time, it gives us a stronger hand when it comes to attracting talented people,” said Østergaard.

“Our companies should, of course, retain their own identity. But it is equally important that there is something that connects us. To me, that includes strong business acumen, a sense of responsibility, keeping the distance from idea to action short, and staying close to the business.”

Photo credit: USTC
Published: 8 September, 2026