Legal

Oon & Bazul to shipowners: Measures to take before anchoring, conducting STS ops in Malaysian waters

Prakaash Silvam of law firm Oon & Bazul LLP shared with Manifold Times on steps shipowners should keep in mind before anchoring and conducting STS operations in Malaysian waters to avoid detention.

Published

1 year ago

November 27, 2023

Admin

Oon & Bazul to shipowners: Measures to take before anchoring, conducting STS ops in Malaysian waters

Prakaash Silvam, who heads the Shipping Department at Oon & Bazul LLP, shared with Singapore-based bunkering publication Manifold Times what shipowners should keep in mind before anchoring and conducting STS operations in Malaysian waters as well as steps to avoid ships being detained by local authorities:

On 5 November 2023, the Malaysian Maritime Enforcement Agency (MMEA) detained two vessels in Kapar waters, Selangor, for conducting STS oil transfer activities, without obtaining the due authorisation. Such enforcement operations are a frequent occurrence. Just in 2023 alone, more than 70 vessels have been detained so far for illegal anchoring and STS transfers.

What do shipowners need to do to avoid detention?

Pursuant to the Merchant Shipping Ordinance 1952, it is illegal to anchor in Malaysian waters without obtaining a permit. Section 491B of the ordinance mandates that the vessels must notify the director of the marine or port office, regarding their planned activities within Malaysian waters, and obtain due authorisation. Failure to do so results in detention by the Malaysian authorities.

In addition to the lack of awareness of what the local laws require, it is not uncommon for there to be a misunderstanding as to where Malaysia’s territorial waters begin. For instance, the territorial limits in Southern Johor waters, often inaccurately referred as ‘Singapore OPL East’, extend as much as 60 Nautical Miles from the main coastline in Malaysia. There are no “international waters” outside Singapore waters and vessels are either in Malaysian or Indonesian territorial waters.

Shipowners are recommended to take the following measures prior to anchoring:

• Take additional efforts to check their exact location, such as keeping the “1979 Malaysian Territorial Waters Chart” onboard. The Malaysian authorities rely on this chart to determine if a vessel has entered its territorial waters. The regular navigational charts of this area may not be accurate with regards to the national boundaries.

• Obtain information on the designated anchorage area, by contacting the relevant authorities.

• Appoint a local agent and get permission from local port authority prior to carrying out their intended act.

What is the process should a vessel be detained?

Once a vessel has been detained, owners can expect the following investigative steps to be taken by the MMEA:

The Master and Chief Officer/Chief Engineer are usually taken ashore to MMEA’s office to give their statements. They are questioned about their qualifications and experience, details of the voyage undertaken, and reasons for anchoring at that specific location. The MMEA confiscates the ship’s documents and the passports of the crew members.

Once the crew’s statements have been taken, the MMEA hands over the matter to the Marine Department to prosecute the matter and a hearing before the magistrate will be fixed.

As per section 314 of the Criminal Procedure Code (CPC), the owners are required to pay a bond in order to procure the release of the vessel. The bond is to secure any fine that may be levied on the shipowners at a later date.

After the bond has been paid and the documents of the ship are returned to the vessel, the vessel can sail. Subsequently, owners can choose either to admit liability or to dispute the charges. The maximum fine for each offence is RM 100,000 (approximately USD 24,000). The entire process of getting the vessel released can take up to a few weeks. Our Malaysian associate office, TS Oon & Partners, has substantial experience handling such matters and have represented numerous shipowners to release their vessels (some as quick as within a week of being detained) and substantially reduce the fines which are payable.

Photo credit: Oon & Bazul
Published: 27 November, 2023

Related Topics:Legal - Crime Legal - Vessel arrest

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Notice of intended dividend issued for defunct bunkering firm Coastal Oil Singapore

Company’s former Chief Finance Officer received a nine-year jail sentence in 2021 after pleading guilty to 15 charges for conspiring with others to defraud eight banks into approving USD 320 million in loans.

Published

4 days ago

April 17, 2025

Admin

A notice was published in the Government Gazette on Wednesday (16 April), regarding the second and final intended dividend to creditors of defunct bunkering firm Coastal Oil Singapore Pte Ltd.

The following are details of the notice of intended dividend of the company:

Name of Company : Coastal Oil Singapore Pte. Ltd. (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 200413975N
Address of Registered Office : 1 Raffles Quay, #27-10, South Tower, Singapore 048583
Last Day of Receiving Proofs : 30 April 2025
Name of Liquidator : Yit Chee Wah
Address : c/o FTI Consulting (Singapore) Pte. Ltd.,1 Raffles Quay,#27-10, South Tower, Singapore 048583

In 2021, the former Chief Finance Officer of Coastal Oil Singapore received a nine-year jail sentence at the State Courts of Singapore.

Ong Ah Huat earlier pleaded guilty to 15 charges; the charges include three counts of engaging in a scheme to defraud and nine counts of forgery for conspiring with accomplices to defraud eight banks into approving USD 320 million in loans.

The banks involved were: China Merchants Bank (Singapore), Bank of Communications (Hong Kong), BNP Paribas (Hong Kong), Cooperative Rabobank (Hong Kong), DBS Bank (Hong Kong), HSBC (Hong Kong), OCBC (Hong Kong), and Standard Chartered Bank (Hong Kong).

In 2019, Manifold Times reported Hong Kong-listed COSCO SHIPPING International (Hong Kong) Co., Ltd stating its indirect wholly-owned bunkering subsidiary Sinfeng suspecting fraud to be involved in the liquidation of Coastal Oil Singapore during December 2018.

It was believed Coastal Oil Singapore owed approximately US $357 million to 79 firms. Out of the total USD 357 million, banks were the hardest hit taking up about US $354 million, or 99.1%, of total credit owed.

A complete coverage of the events leading to the current development has been arranged by Singapore bunker publication Manifold Times (in descending date order) below:

Photo credit: Benjamin-child
Published: 17 April, 2025

Business

Singapore: Director of Sinco Shipping declares inability to continue business

Sharma Mohit Krishnabhagwan, director of Sinco Shipping, lodged a statutory declaration stating the company cannot by reason of its liabilities continue its business; liquidators have been appointed as well.

Published

5 days ago

April 16, 2025

Admin

A director of Sinco Shipping Pte Ltd filed a statutory declaration (SD) stating that the company cannot continue its business due to its liabilities, according to a 15 April (Tuesday) notice on the Government Gazette.

In the SD, the director, Sharma Mohit Krishnabhagwan, said meetings of the company and of its creditors have been summoned for 28 April.

According to SGP Business website, a business platform for business and individuals, the company’s main business was in shipping including chartering of ships and boats with crew (freight) with renting.

In another notice, it was stated that Mr Lau Chin Huat and Mr Yeo Boon Keong, Licensed Insolvency Practitioners, both of Technic Inter-Asia Pte Ltd, c/o 50 Havelock Road #02-767 Singapore 160050, have been appointed as joint and several provisional liquidators of the company on 11 April.

In a third notice on the Government Gazette, the liquidators said a meeting of creditors of the company will be held by way of video conference via Zoom (deemed venue : 50 Havelock Road, #02-767 Singapore 160050) on 28 April at 11:30am, for the following purposes:

To lay a full statement of the company’s affairs together with a list of creditors and the estimated amounts of their claims;
To nominate Liquidator(s) or confirm the nomination of Liquidator(s) by member(s);
To consider and if thought fit, appoint a Committee of Inspection consisting of not more than 5 persons, whether creditors or not, for the purpose of winding up the company; and
Any other business.

To attend, creditors have to nominate and vote thereat their Proof of Debt and a proxy form must be lodged with the liquidators no later than 4pm on 25 April 2025.

A copy of the Proof of Debt form, proxy form, a statement showing the names of all creditors and the amount of their claims . This notice has been dispatched to all known creditors of the company.

Any other person claiming to be a creditor of the company as at this date may write to the liquidators to request for copies.

Creditors would need to register their attendance by email to [email protected] no later than 4pm on 25 April 2025 to receive instructions on how to join the video conference via Zoom.

Photo credit: Drew Beamer on Unsplash
Published: 16 April, 2025

Winding up

Singapore: Creditors’ meeting scheduled for Vasi Shipping Pte Ltd

Meeting will be held via audio visual communication at 3pm to appoint a liquidator and receive a statement of the company’s affairs together with a list of creditors, according to Government Gazette notice.

Published

1 week ago

April 14, 2025

Admin

A creditors’ meeting for Vasi Shipping Pte Ltd has been scheduled to take place on 28 April, according to a Government Gazette notice by the company’s director on Thursday (10 April).

The meetings will be held via audio visual communication at 3pm.

The agenda of the meetings will be as follows:

receiving a statement of the company’s affairs together with a list of creditors and the estimated amounts of their claims;
appointing Liquidator(s);
appointing a committee of inspection of not more than 5 members, if thought fit;
any other business.

According to the company’s website, Vasi Shipping provides end-to-end shipping solutions and provides ocean freight management services, specialising in the movement of fertilisers, minerals and chemicals within Asia and beyond.

Note:

A creditor entitled to attend the above meeting may appoint a proxy to attend in his stead. A proxy need not be a creditor of the Company. The instruments appointing a proxy must be lodged in the following manner:
by email to the email address at ([email protected]); or
by post to 11 Collyer Quay, #07-02 The Arcade, Singapore 049317; not later than 3.00 p.m. two days before the meeting or adjourned meeting at which it is to be used.
Arrangements relating to attendance at the meeting via electronic means (including arrangements by which the meeting can be electronically accessed via live audio-visual webcast), will be sent by email upon receipt and verification of the proxy form. The email will contain meeting ID and password details, as well as the link to access the live audio-visual webcast.
Pursuant to Section 445 of the IRDA, should creditors(s) with at least 10% in value of the total creditors’ claims require a place for the meeting be specified, please notify the Liquidators’ office by 14 April 2025.

Photo credit: steve pb from Pixabay
Published: 14 April, 2025