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

Bunker Fuel

JLC China Bunker Fuel Market Monthly Report (June 2026)

China’s bonded bunker fuel sales rebounded in June, as bunkering demand grew modestly and bonded bunker fuel prices in domestic ports were still competitive amid sufficient supply, says JLC.

Published

2 days ago

July 10, 2026

Admin

JLC China Bunker Fuel Market Monthly Report (June 2026)

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for May 2026 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

China’s bonded bunker fuel sales rebound in June

China’s bonded bunker fuel sales rebounded in June, as bunkering demand grew modestly and bonded bunker fuel prices in domestic ports were still competitive amid sufficient supply.

The country sold about 1.92 million mt of bonded bunker fuel in the month, with the daily sales at 63,980 mt, up by 5.53% month on month, JLC’s data shows.

Regarding the sales by supplier, the sales by Chimbusco, Sinopec (Zhoushan), SinoBunker, and ChinaChangjiang Bunker (Sinopec) respectively settled at 400,000 mt, 650,000 mt, 80,000 mt, and 10,000 mt inthe month, while those by suppliers with regional bunkering licenses settled at 779,400 mt.

China’s daily LSFO output hits 24-month high in June

China’s daily low-sulfur fuel oil (LSFO) output hit a 24-month high in June, because of the release of new export quotas and good production margins.

Chinese refiners produced about 1.31 million mt of LSFO in the month, with the daily output at 43,567 mt, the highest since June 2024, JLC’s data shows. The daily output rose by 13.68% month on month and 27.89% year on year.

Specifically, PetroChina recorded a surge in its LSFO output. Most refineries, including Liaohe Petrochemical, Dalian WEPEC, Jinzhou Petrochemical, Jinxi Petrochemical, and Dagang Petrochemical, boosted their production. Meanwhile, CNOOC’s LSFO output increased moderately, as its Taizhou Petrochemical resumed production after maintenance. Zhongjie Petrochemical did not produce any LSFO as it was still under maintenance, while Huizhou Refinery maintained stable production. Zhoushan Petrochemical’s LSFO output decreased in the month, but it was still relatively high.

On the other hand, Sinopec’s LSFO output slipped slightly in June, with Shengli Oilfield, Shanghai Petrochemical, and Shanghai Gaoqiao Petrochemical cutting their production. However, Maoming Petrochemical and ZhongKe (Guangdong) Refinery & Petrochemical maintained stable production, while Qingdao Petrochemical raised its output modestly. ZPC and Sinochem did not produce any LSFO in the month, but the latter produced and exported 10,000 mt.

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Domestic-trade bunker fuel demand mixed in June

Domestic-trade heavy bunker fuel demand improved modestly and exceeded supply in June. The demand settled at 310,000 mt in the month, with the daily volume at 10,333 mt, inching up by 0.10%month on month, JLC’s data shows. By contrast, domestic-trade light bunker fuel demand settled at 150,000 mt in the month, with the daily volume at 5,000 mt, down by 3.12% month on month, the data shows. Bearish sentiment lingered in the light bunker fuel market, and buying interest was limited.

Bunker Fuel Supply

China’s bonded bunker fuel imports hit 16-month low in May

China’s bonded bunker fuel imports tumbled further in May, hitting a 16-month low. The country imported 275,900 mt of bonded bunker fuel in the month, plunging by 50.30%the previous month and 54.81% from a year earlier, calculations show, based on data from the General Administration of Customs of PRC (GACC).

The imports were the lowest since January 2025. Bonded bunker suppliers did not import any LSFO in the month as domestic supply remained sufficient. Meanwhile, they reduced purchases of high-sulfur fuel oil (HSFO) when import arbitrage narrowed. Regarding the imports by source, Russia still ranked first by shipping 135,258 mt to China, accounting for 49.02% of the latter’s total imports. Malaysia remained in second place with 120,631 mt, accounting for 43.72%, while South Korea ranked third with 20,025 mt, occupying 7.26%.

China’s bonded bunker fuel imports totaled about 2.87 million mt in January-May 2026, a boost of 7.80%from the same period of time in 2025, calculations also show.

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Domestic-trade bunker fuel supply declines further in June

Chinese blenders supplied 290,000 mt of domestic-trade heavy bunker fuel in June, with the daily supply at 9,667 mt, a cut of 9.19% month on month, JLC’s data shows.

Blenders reduced their bunker fuel supply as the flow of low-sulfur residual oil into the bunker fuel field decreased. Meanwhile, cargo loading and unloading at northern ports slowed down amid stricter tax inspections and some other factors, which also depressed blenders’ production enthusiasm.

Domestic-trade MGO supply settled at 180,000 mt in June, with the daily supply at 6,000 mt, down by 2.11%from a month earlier, the data shows. Refineries lowered their MGO output when terminal demand weakened.

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Bunker Prices, Profits

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Editor
Yvette Luo
+86-020-38834382
[email protected]

Sales (Beijing)
Tony Tang
+86-10-84428863
[email protected]

Sales (Singapore)
Ginny Teo
+65-31571254
[email protected]
[email protected]

JLC Network Technology Co., Ltd is recognised as the leading information provider in China. We specialise in providing the transparent, high-value, authoritative market intelligence and professional analysis in commodity market. Our expertise covers oil, gas, coal, chemical, plastic, rubber, fertilizer and metal industry, etc.

JLC China Bunker Fuel Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market, demand, supply, margin, freight index, forecast and so on. The report provides full-scale & concise insight into China bunker oil market.

Note: China-based commodity market information provider JLC Technology has been providing Singapore bunkering publication Manifold Times China bunker volume data since 2020. Data from earlier periods are available here.

Photo credit: JLC Network Technology
Published: 10 July, 2026

Business

Singapore retains world’s leading maritime centre ranking in 2026 ISCD Index

The city state retained its position as the world’s leading maritime centre in the 2026 Xinhua-Baltic International Shipping Centre Development Index for the 13th consecutive year.

Published

2 days ago

July 10, 2026

Admin

The Maritime and Port Authority of Singapore (MPA) on Friday (10 July) said Singapore retained its position as the world’s leading maritime centre in the 2026 Xinhua-Baltic International Shipping Centre Development (ISCD) Index for the 13th consecutive year.

The port authority said the recognition is significant as it marks its 30th anniversary this year.

“It reflects three decades of close partnership between MPA and the maritime community to strengthen Maritime Singapore’s ecosystem, underpinned by strong connectivity, a comprehensive range of maritime services, and Singapore’s role as a trusted platform for the global maritime community to connect and collaborate,” MPA said in a statement.

The Xinhua-Baltic ISCD Index is an internationally recognised benchmark of leading maritime centres. The Index assesses maritime hubs across a range of indicators, including port performance, maritime business services, and the overall business environment.

In 2025, the Port of Singapore handled a record 44.66 million Twenty-Foot Equivalent Units (TEUs) in container throughput and 3.22 billion gross tonnage in vessel arrivals.

The Port of Singapore also remained the world’s largest bunkering port, supplying a record 56.77 million tonnes of marine fuel, including growing volumes of alternative marine fuels. Today, Singapore is connected to more than 600 ports worldwide and is home to over 200 international shipping groups.

Mr Ang Wee Keong, Chief Executive of the Maritime and Port Authority of Singapore, said, “We are honoured that Singapore has once again been recognised as the world’s leading maritime centre. This reflects the strong commitment and collective efforts of our industry partners and the wider maritime community.

“As the industry continues to evolve, we will continue working closely with our partners to strengthen Maritime Singapore’s competitiveness and create value for the global maritime community.”

Photo credit: Peter Nguyen on Unsplash
Published: 10 July, 2026

Digital platform

Norwegian Cruise Line to enhance bunker procurement process with ZeroNorth

By leveraging ZeroNorth’s Bunker Procurement Solution, NCLH will create greater efficiencies across the bunker procurement process while enhancing transparency, supplier collaboration, and decision-making.

Published

2 days ago

July 10, 2026

Admin

Norwegian Cruise Line to enhance bunker procurement process with ZeroNorth

Maritime technology solutions provider ZeroNorth on Thursday (9 July) said it is partnering with Norwegian Cruise Line Holdings to enhance bunker procurement processes through digital innovation.

“By leveraging ZeroNorth’s Bunker Procurement Solution, NCLH will create greater efficiencies across the bunker procurement process while enhancing transparency, supplier collaboration, and decision-making,” the company said in a social media post.

ZeroNorth added that fuel procurement is one of the most complex functions in operating a global cruise fleet.

“Balancing market dynamics, supplier options, operational schedules, and cost considerations require timely insights and the right technology,” it said.

Lory Urdaneta, Senior Director Energy Strategy at Norwegian Cruise Line Holdings, said: “At Norwegian Cruise Line Holdings, we are committed to embracing innovative technologies that strengthen our operations and deliver long-term value.

“Our partnership with ZeroNorth is an important step in enhancing our bunker procurement process through greater transparency, data-driven decision-making, and operational efficiencies. We look forward to working together to drive innovation and support the continued evolution of our procurement capabilities.”

Photo credit: ZeroNorth
Published: 10 July, 2026