Sea Hub Energy seeks US$12 million from Southernpec at Singapore High Court

Sea Hub Energy seeks US$12 million from Southernpec at Singapore High Court


Singapore-based Sea Hub Energy Pte Ltd, involved in the business of chartering and trading of marine fuel, on 7 June 2019 filed for a claim totalling US $12 million (exact: US $12,360,526.69) from Southernpec (Singapore) Shipping Pte Ltd at the High Court of the Republic of Singapore.

Sea Hub alleges it entered into four contracts with Southernpec between 1 August to 1 September 2017 for the loading of 380 centistokes (cSt) grade (HFO) and low sulphur marine gas oil (MGO), according to court documents obtained by Manifold Times.

The contracts are for the loading of 17,200 metric tonnes (mt) HFO between 26 July to 25 August; loading of 300 mt MGO between 1 July to 25 August; loading of 200 mt MGO between 26 August to 25 September; and loading of 19,300 mt HFO between 26 August to 25 September.

According to Sea Hub, Southernpec issued a purchase confirmation for 17,200 mt of HFO and 300 mt of MGO; however, it did not issue a purchase confirmation for 200 mt of MGO and 19,300 mt of HFO as “it was understood between the parties that the same payment terms set out in the previous purchase confirmations will apply”.

In its reply on 3 July, Southernpec denied it entered into sales contracts with Sea Hub for 200 mt of MGO and 19,300 mt of HFO as it alleged both parties stopped business with each other around September 2017.

As such, Southernpec claimed the disputed loadings of MGO and HFO were done without its request; the company also alleges it has not received 19,300 mt of HFO from Sea Hub.

Further, Southernpec claimed debts related to earlier loadings for 17,200 mt of HFO and 300 mt of MGO have already been paid/set off due to the contracts being set under the following condition: “Payments under this contract can be offset with buyer’s bunker sales contracts to the seller.”

Instead, Southernpec alleges Sea Hub owing US $5.7 million (US $5,654,394.50) after taking off sets into account.

It adds if the court recognises the loading for the disputed 200 mt of MGO and 19,300 mt of HFO the set off would be US $799,439.67 in favour of Sea Hub, and not US $12 million.


Sea Hub, in its latest response on 18 July, noted Southernpec confirming though its own calculation the debt of US $12 million to the former though an earlier communication on 23 July 2018.

“Accordingly, it is undisputed between the Plaintiff and the Defendant that the outstanding amount due and owing to the Plaintiff from the Defendant is USD12,360,526.69,” stated Sea Hub’s lawyers.

“Even if the Plaintiff’s claim herein is subject to set off against the invoices issued by the Defendant to the Plaintiff, the amount outstanding from the Defendant to the Plaintiff would be USD799,439.67.”


Photo credit: Manifold Times
Published: 5 August, 2019

 

Oil Price

Top Ports Price $/mt Change High Low Spread
Singapore 000.00 000.00 000.00 000.00 000.00
Fujairah 000.00 000.00 000.00 000.00 000.00
Rotterdam 000.00 000.00 000.00 000.00 000.00
Hong Kong 000.00 000.00 000.00 000.00 000.00
Antwerp 000.00 000.00 000.00 000.00 000.00
Top Ports Price $/mt Change High Low Spread
Singapore 000.00 000.00 000.00 000.00 000.00
Fujairah 000.00 000.00 000.00 000.00 000.00
Rotterdam 000.00 000.00 000.00 000.00 000.00
Hong Kong 000.00 000.00 000.00 000.00 000.00
Antwerp 000.00 000.00 000.00 000.00 000.00
Top Ports Price $/mt Change High Low Spread
Singapore 000.00 000.00 000.00 000.00 000.00
Fujairah 000.00 000.00 000.00 000.00 000.00
Rotterdam 000.00 000.00 000.00 000.00 000.00
Hong Kong 000.00 000.00 000.00 000.00 000.00
Antwerp 000.00 000.00 000.00 000.00 000.00

Metcore: Understand TR48 on the use of MFM

Taking a homogeneous approach on MFM systems places both the buyer and the supplier under risk without proper insurance.

BW supports the global implementation of mass flow meters

BW is proud to support the global implementation of mass flow meters for a more efficient, precise, and transparent bunkering process.