Business

Brightoil publishes supplementary forensic report on Brightoil Petroleum (S’pore) Pte Ltd

Report shows further findings based on RSM’s earlier primary report regarding certain oil trading transactions of BOPS and SZB that were red flagged by PwC.

Published

6 years ago

September 22, 2020

Admin

Hong Kong-listed Brightoil Petroleum Holdings on Thursday (17 September) published the key findings of the Forensic Review by RSM Corporate Advisory (Hong Kong) Limited (RSM) regarding certain oil trading transactions of Brightoil Petroleum (S’pore) Pte. Ltd. (BOPS) and Shenzhen Brightoil Group Co Ltd. (SZBO), owned and controlled by Dr. Sit, the ultimate controlling shareholder of Brightoil at the time.

This is a Supplemental Report that builds upon the knowledge and findings of the primary forensic investigation report dated 31 January 2020, it said.

In the report, RSM investigates further into issues in BOPS’ trade analysis with SZBO and its credit limit given to customers and structured/financing deal arrangements that were flagged up by Brightoil’s former auditors PricewaterhouseCoopers to be of concern:

In this review, RSM sought the additional available information with respect to the financial year ended 30 June 2018 from the current management of the Group to arrive at the findings and observations that was discussed in the Supplemental Report. Given the circumstances as described below, RSM believes these additional findings and observations did not lead to any determination and/or comment about the Subject Transactions and other back-to-back transactions more conclusive than that mentioned in the Primary Report.

First, the outstanding receivables due from the Subject Customers of USD1.34 billion were still substantial as at 30 June 2018, which was higher than USD1.309 billion as at 30 June 2017. Even though settlement was recorded for some of the outstanding receivables of the Subject Customers as at 30 June 2017, BOPS continued trading with 6 of the Subject Customers during the second half of 2017 and hence the situation of the doubtful receivables did not improve at all.

Secondly, RSM noted the phrase “financing deals” was used interchangeably with the phrase “structured deals”. In particular, as discussed in the Supplemental Report, RSM noted that: i) financing deals were financing related,

ii) financing deals could be differentiated from normal trading deals,

iii) attempts were made to mimic operational arrangement of normal trading deals in financing deals, and

iv) there could be no intention to take physical possession of cargo in financing deals; but it is unclear whether this meant paperwork-only trade as well as whether there would be any change on beneficial ownership.

Together, from the description of the structured/financing deals, there were various characteristics of trading of financial instruments rather than the intention to take physical delivery in the trading of tangible products. Alternatively, these observations raised further doubts as to the difference as well as objective between these structured/financing deals and the “real” trades of oil products in the normal course of business of an oil trading company.

Thirdly, RSM noted that BOPS entered into various back-to-back transactions with each of the 12 Subject Customers, which were later known to us as structured/financing deals. These structured/financing deals were, majority if not all, loss-making before taking into account the discounts provided by SZBO. RSM found evidences that some of these structured/financing deals were conducted for financial arrangement purposes but, unfortunately, there were no precise indications as to which parties enjoyed direct benefits from such arrangements. In addition, owing to the pre-arranged and back-to-back nature of the transaction flow in structured/financing deals, the management could have presumed that the exposure to credit (and legal) risks in these structured/financing deals would be minimal, and hence allowing unsecured but high open credit to these customers. The credit risks finally turned out to be significant which resulted in substantial receivable amount long outstanding as at 30 June 2018.

RSM raised a further question as to what had gone wrong and caused the deviation(s) from the structured plan and arrangement including but not limited to which parties held onto the monies which were supposed to flow in the structured/financing deals and why a customer would fail to make settlements in structured/financing deals as “structured”.

Finally, RSM considered that there were still significant limitations associated with the investigation, such as the lack of communication with the relevant counterparties and former employees of BOPS, the scope of this review was limited to the available information and documents provided by the current members of the Group. Should additional information become available in the future, considerable amendments to the Primary Report and/or the Supplemental Report may be required.

A full copy of the report published by Brightoil on HKSE is available here.

Earlier developments of Brightoil (since late 2017 to date) can be found in the search results here.

Photo credit: Manifold Times
Published: 20 September, 2020

Winding up

Hengli Petrochemical’s ex-Singapore trading arm faces winding up application

In April, China’s Hengli Group reportedly reorganised the shareholding structure of its Singapore-based trading arm shortly after the United States imposed sanctions on its refinery unit.

Published

6 hours ago

August 26, 2026

Admin

An application for the winding up of Hengli Petrochemical International Pte Ltd, the former Singapore trading arm of Hengli Petrochemical (Dalian) Refinery, is scheduled to be heard at 10am on 4 September, according to a Monday (24 August) notice on the Government Gazette.

The application was filed by Dalian Hengli New Energy Sales Co Ltd, a creditor of the company, on 14 August and will be heard at the High Court of Singapore.

In May, it was reported that Hengli Petrochemical International dismissed some employees, with some workers being laid off while others were offered positions in other entities.

In April, China’s Hengli Group reportedly reorganised the shareholding structure of its Singapore-based trading arm shortly after the United States imposed sanctions on its refinery unit.

On 24 April, US Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned China-based independent teapot refinery Hengli Petrochemical (Dalian) Refinery Co Ltd, a unit of Hengli Petrochemical, saying it purchased billions of dollars’ worth of Iranian oil.

The company shifted most of the ownership of Hengli Petrochemical International to Dalian Changxing International Trade, a firm backed by a local Chinese government entity.

The Singapore unit was last reported to be 95% owned by this new shareholder, while Hengli Petrochemical’s Dalian refinery retains a 5% stake. Previously, the refinery had full ownership of the Singapore entity.

It was reported that Hengli Petrochemical denied it has engaged in any trade with Iran.

The notice stated that any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose.

A copy of the winding up application will be furnished to any creditor or contributory of the company requiring the copy of the winding up application by the undersigned on payment of the regulated charge for the same.

The Applicant’s address is No. 551, Pincui Road, Changxing Island Economic Zone, Dalian Liaoning Province, China.

The Applicant’s solicitors are M/S ASIALEGAL LLC of 1 Coleman Street, #07-02A, The Adelphi, Singapore 179803.

Photo credit: Manifold Times
Published: 26 August, 2026

Sanctions

US targets five bunker companies in latest sanctions campaign against Iran

US sanctioned Hong Kong-based Shipoil Limited and its sister companies, Dubai-based Shipoil FZCO and Ship Fuels and Trade DMCC as well as two UAE-based companies.

Published

6 hours ago

August 26, 2026

Admin

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Monday (24 August) sanctioned five bunker companies, alleging they supplied marine fuel to vessels carrying Iranian crude oil and to ships linked to the Islamic Republic of Iran Shipping Lines (IRISL).

US reportedly imposed sanctions on IRISL in late 2019, describing it as “the preferred shipping line for Iranian proliferators and procurement agents”, which included transporting items intended for Iran’s ballistic missile programme.

“Sanctioned Iranian actors, to include those associated with its armed forces, rely on a vast network of shipping facilitators in multiple jurisdictions to enable the transportation and delivery of Iranian crude oil to markets in East Asia, to include vessel brokers, bunkering service providers, and financial intermediaries,” US OFAC said in a statement.

Since at least 2023, US OFAC said Hong Kong-based Shipoil Limited and its sister companies, Dubai-based Shipoil FZCO and Ship Fuels and Trade DMCC—operated by Greek nationals Almpertos “Alberto” Tsoris and Georgios “George” Tsoris—coordinated with “sanctioned Iranian actors” including the National Iranian Tanker Company (NITC), to provide bunkering services to vessels carrying Iranian crude oil and other petroleum products.

In 2026, Alberto Tsoris allegedly coordinated with NITC and the Shamkhani network via Shipoil FZCO and Ship Fuels and Trade DMCC to provide bunkering to the sanctioned oil tanker MEDNA (IMO: 9281683), formerly known as the ANTHEA and SIRI, a vessel which has carried crude oil for Iran’s Armed Forces General Staff.

Similarly, George Tsoris used Shipoil FZCO and Ship Fuels and Trade DMCC to provide vessel bunkering services to a mix of subsidiaries and front companies for IRISL. In 2026, UAE-based Unique Oasis Shipping Services LLC and Target Horizon Shipping LLC collaborated with Shipoil Limited and Ship Fuels and Trade DMCC to provide “hundreds of thousands of dollars’ worth of bunkering services to an IRISL-linked vessel”.

In mid-2026, George Tsoris provided bunkering services to the sanctioned IRISL vessel BEHTA in coordination with IRISL subsidiary, UAE-based Good Luck Shipping LLC, and Unique Oasis Shipping Services LLC.

According to US OFAC, Shipoil Limited, Shipoil FZCO, and Ship Fuels and Trade DMCC operate within the same corporate network, share company leadership, and transfer funds between themselves.

“Shipoil Limited has transferred millions of dollars to Shipoil FZCO,” it said.

Almpertos Tsoris, Shipoil FZCO, and Ship Fuels and Trade DMCC were designated pursuant to Executive Order 13902 for operating in the petroleum sector of the Iranian economy. Shipoil Limited is being designated pursuant to Executive Order for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Shipoil FZCO.

Georgios Tsoris, Good Luck Shipping LLC, Unique Oasis Shipping Services LLC, and Target Horizon Shipping LLC are being designated pursuant to Executive Order 13382 for having provided, or attempted to provide, financial, material, technological, or other support for, or goods or services in support of, IRISL.

Photo credit: tommao wang on Unsplash
Published: 26 August, 2026

LNG Bunkering

CIMC SOE starts construction of two LNG bunkering vessels for GSX Energy

The two 20,000-cubic-metre vessels are the third and fourth in a series of four 20,000-cbm LNG bunkering vessels that CIMC Pacific Offshore is constructing for GSX Energy.

Published

6 hours ago

August 26, 2026

Admin

CIMC SOE starts construction of two LNG bunkering vessels for GSX Energy

Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (CIMC SOE) on Friday (21 August) held a groundbreaking ceremony for two 20,000-cubic-metre LNG bunkering vessels being built for GSX Energy.

The two vessels are the third and fourth in a series of four 20,000-cbm LNG bunkering vessels that CIMC Pacific Offshore is constructing for GSX Energy.

Construction of the first vessel began in May, while the second vessel commenced construction on 10 August.

The vessels are 159 metres long, with a beam of 25 metres and a design speed of 13 knots. Each will be equipped with a Wärtsilä dual-fuel main engine and a 1,300 kW shaft generator to meet power requirements during normal operations. A high-voltage shore power system can also be installed at a later stage.

“The simultaneous commencement of construction on both vessels marks a new phase of accelerated construction for this series of projects, fully demonstrating CIMC SOE’s construction capabilities and project management expertise,” CIMC SOE said.

Photo credit: Nantong CIMC Sinopacific Offshore & Engineering
Published: 26 August, 2026