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‘Reasonable prospects’ to keep Ocean Tankers as a going concern, states Director

‘OTPL has a strong group of employees who have the requisite expertise and experience in ship chartering and management, which has commercial value and should be kept intact.’

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Update:  London-based multinational professional services firm Ernst & Young (EY) has reportedly been appointed as Interim Judicial Managers of Ocean Tankers during a hearing at the High Court of Singapore on Tuesday (12 May). There was no reply from the Director of Ocean Tankers to a request for comment from Manifold Times when contacted about the following article:

The Director of Singapore-based energy transportation firm Ocean Tankers (Pte) Ltd (OTPL), a separate entity from Hin Leong Trading (HLT), on Monday (11 May) submitted an additional affidavit at the High Court of Singapore.

The additional document was to supplement an earlier version filed on 6 May.

The latest affidavit, widely circulated within Singapore’s bunkering sector, was obtained by Singapore bunkering publication Manifold Times.

In it, Lim Chee Meng, also known as Evan Lim, provided reasons why he believed OTPL should be placed in judicial management even though its level of business may not return to similar levels before COVID-19.

“Additionally, it may not be easy to completely shake off the market perception of the linkage to the financial woes of HLT,” he stated, explaining the situation first.

“As a result of this relative decline of business, there is therefore a risk that in the next few weeks or months (subject to the timeous collection of the various freight accounts receivables) OTPL may not be able to fully meet all its operational costs and expenses to operate at the same levels as before.”

Lim further stated OTPL has been taking steps to pursue collection of its account receivables and making other plans, such as the sales of OTPL-owned non-core vessels, for debt repayment.

“I wish to highlight however that these steps take time, and that despite these best efforts, OTPL may still encounter cash flow constraints moving forward,” he said.

Lim, meanwhile, highlighted most vessels bareboat chartered to OTPL are owned by ship-ownig special purpose companies owned by Xihe Holdings Pte Ltd or Xihe Capital Pte Ltd (collectively, the Xihe Group) – where his sister Lim Huey Ching and himself are Directors.

He stated OTPL owing approximately USD 106 million for trade payables and USD 208 million in company loans to the Xihe Group.

He explained the relevant Xihe special purpose company will be entitled to terminate bareboat charters and seek re-delivery of the vessel in the event OTPL is unable to make payment; and there have already been some instances of non-payment by OTPL.

“Despite the real prospect of such termination, I remain of the view that OTPL ought be placed in judicial management, as there are reasonable prospects to keep OTPL as a going concern,” he said.

“This is because OTPL has a strong group of employees who have the requisite expertise and experience in ship chartering and management, which has commercial value and should be kept intact.

“Even if the bareboat charterparty agreements with OTPL are terminated, OTPL remains able to sell its charter, technical, commercial and crewing expertise to the new bareboat charterer for a profit, to ensure a seamless transfer of the vessel to the new bareboat charterer.”

An earlier collection of articles preceding the current development are as follows:

Related: Singapore: Ocean Tankers, a separate entity of Hin Leong, seeking judicial management
RelatedSingapore High Court concedes interim judicial management to Hin Leong Trading
Related: Report: Hin Leong Trading appoints PwC as interim judicial manager
RelatedSingapore’s Police Force commence investigations into Hin Leong Trading
RelatedSembcorp Cogen aborts gasoil supply and storage contract with Hin Leong Trading
RelatedWinson Group and ZenRock Commodities reassure fiscal stability despite Hin Leong fiasco
RelatedReport: Sinopec expresses interest in Hin Leong Trading stake of Universal Terminal
RelatedReport: Hin Leong Trading founder gave instructions to hide USD 800 million losses
Related: Singapore: Ocean Bunkering Services to discontinue marine fuel deliveries
RelatedHin Leong in debt restructuring exercise; Ocean Tankers a separate entity, says CEO
RelatedReport: Hin Leong Trading finances under scrutiny, amid credit pull from two banks

 

Photo credit: Manifold Times
Published: 13 May, 2020

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Ammonia

Singapore: EMA, MPA shortlist two consortia for ammonia power generation and bunkering

Chosen consortia are Keppel’s Infrastructure Division and Sembcorp-SLNG, and the bunkering players in these consortia are Itochu Corporation, NYK Line and Sumitomo Corporation.

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The Energy Market Authority (EMA) and the Maritime and Port Authority of Singapore (MPA) on Thursday (25 July) said they have shortlisted two consortia that will proceed to the next round of evaluations of proposals to provide a low- or zero-carbon ammonia solution on Jurong Island for power generation and bunkering. 

The two consortia were selected from a total of six that were earlier shortlisted in 2023 to participate in a restricted Request for Proposal (RFP), following an Expression of Interest (EOI) called in 2022. The bids were assessed based on the technical, safety and commercial aspects of their proposals. 

The two consortium leads are Keppel’s Infrastructure Division and Sembcorp-SLNG, and the bunkering players in these consortia are Itochu Corporation, Nippon Yusen Kabushiki Kaisha (NYK Line) and Sumitomo Corporation. The two consortia will proceed to conduct engineering, safety and emergency response studies for the proposed Project.

At the next phase, we will select one of the two bidders as the lead developer of the project. The lead developer will develop the end-to-end ammonia solution comprising (i) generating 55 to 65 MW of electricity from imported low- or zero-carbon ammonia via direct combustion in a Combined Cycle Gas Turbine; and (ii) facilitating ammonia bunkering at a capacity of at least 0.1 million tons per annum (MTPA), starting with shore-to-ship bunkering followed by ship-to-ship bunkering. 

Given the nascency of the technology and global supply chains, the Government will work closely with the appointed lead developer to implement the Project. We aim to announce the lead developer by Q1 2025.

The project is part of Singapore’s National Hydrogen Strategy launched in 2022, which outlines Singapore’s approach to develop low-carbon hydrogen as a major decarbonisation pathway as part of the nation’s commitment to achieve net zero emissions by 2050.

A key thrust of this strategy is to experiment with the use of advanced hydrogen technologies that are on the cusp of commercial readiness. Ammonia is currently one of the most technologically-ready hydrogen carriers with an established international supply chain for industrial use.

“If successful, the project will position Singapore as one of the first countries in the world to deploy a direct ammonia combustion power plant and support the development of ammonia bunkering for international shipping, EMA and MPA said.

“This will help to unlock the potential of low-carbon ammonia as a low-carbon fuel.”

 

Photo credit: Manifold Times
Published: 25 July 2024

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LNG Bunkering

China: River-sea LNG bunkering vessel named and delivered in Shanghai

The 14,000 cubic metre ship, “Huaihe Nengyuan Qihang”, was independently developed, designed and built by Hudong-Zhonghua Shipbuilding (Group) for Huaihe Energy Holding Group.

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China: River-sea LNG bunkering vessel named and delivered in Shanghai

China’s river-to-sea LNG bunkering vessel, which was built locally, was named and delivered in Shanghai on Monday (19 July), according to the Shanghai Association of Shipbuilding Industry (SASIC). 

The 14,000 cubic metre (cbm) ship, Huaihe Nengyuan Qihang, was independently developed, designed and built by Hudong-Zhonghua Shipbuilding (Group) Co., Ltd for Huaihe Energy Holding Group as part of China’s "Gasification of the Yangtze River” project.

The ship is capable of travelling through the Nanjing Yangtze River Bridge all year round and has been dubbed a “Customised Yangtze River” LNG refuelling and transportation ship.

The ship is equipped with the B-type LNG containment system independently developed by Hudong-Zhonghua and authorised by a national patent.

According to SASIC, this was the first time such a system has been applied to a domestic LNG  refuelling and transportation ship, marking a major breakthrough in the B-type LNG containment system developed by China with independent intellectual property rights.

Related: China’s first river-sea LNG bunkering ship completes inaugural bunkering operation

Disclaimer: The above article published by Manifold Times was sourced from China’s domestic market through a local correspondent. While considerable efforts have been taken to verify its accuracy through a professional translator and processed from sources believed to be reliable, no warranty is made regarding the accuracy, completeness and reliability of any information.

 

Photo credit: Shanghai Shipbuilding Industry Association
Published: 25 July 2024

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Environment

Singapore-flagged tanker “Hafnia Nile” to be moved to safe location for cargo transfer

“Hafnia Nile” and the Sao Tome and Principe-flagged “Ceres I” collided and caught fire about 55km northeast of Pedra Branca on 19 July.

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Singapore-flagged tanker “Hafnia Nile” to be moved to safe location for cargo transfer

Shipowner Hafnia, the operator of Singapore-flagged tanker Hafnia Nile, is in discussion with The Maritime and Port Authority of Singapore (MPA) on a safe location to transfer the ship’s cargo, MPA said on Wednesday (24 July). 

They are also discussing towage plans for repairs to be approved by MPA.

Hafnia Nile and the Sao Tome and Principe-flagged Ceres I collided and caught fire about 55km northeast of Pedra Branca on 19 July.

“An additional tug with deep-sea towing capacity has arrived on site on 23 July 2024, joining four other tugs equipped with oil response and firefighting capabilities,” MPA said. 

In a meeting with MPA on 23 July, Hafnia informed MPA of light oil sheens near Hafnia Nile

“As part of the towage plan, Hafnia will arrange for repairs, containment and clean-up of the assessed localised seepage,” it added.

Reuters reported Hafnia stating that an initial assessment by a team of specialists conducting inspections of damaged areas of the tanker, showed Hafnia Nile's engine room had suffered damage from the fire.

Hafnia also reportedly said a salvage team has boarded the vessel and transferred equipment from one of the attending tugs on site to contain and stop any localised seepage.

Manifold Times previously reported Ceres 1 allegedly leaving the site of the collision as of 20 July and turned off its Automatic Identification System (AIS) but was believed to be in Malaysian waters.

The Malaysian Maritime Enforcement Agency (MMEA) was able to locate Ceres 1 some 28 nautical miles northeast of Pulau Tioman.

Related: “Ceres 1” goes dark after collision with Singapore-flagged tanker, located by MMEA
Related: MPA: Fire breaks out on two ships near Pedra Branca, search and rescue underway

 

Photo credit: Malaysian Maritime Enforcement Agency
Published: 25 July 2024

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