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Singapore: DPPs appeal stricter sentence for ex-Lukoil fuel oil trader who exploited internal loophole

David John Kidd amassed losses of over SGD 1 million to Lukoil Asia Pacific Pte Ltd through multiple irregular trades with Transocean Oil over a four-month period in 2016.
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Singapore Deputy Public Prosecutors (DPPs) on Monday (3 August) submitted an appeal to the High Court of the Republic of Singapore for an increased jail term of David John Kidd, a 32-year-old male Singapore permanent resident and British citizen formerly employed by Lukoil Asia Pacific Pte Ltd (Lukoil).

A District Judge on 13 March 2020 sentenced Kidd, who started serving his sentence on 23 March 2020, to 36 weeks’ imprisonment; the DPPs are now appealing to the High Court to increase his jail sentence to 18 months (72 weeks), according to a court document obtain by Manifold Times.

Kidd was the sole trader responsible for a high sulphur fuel oil (HSFO) contract with Transocean Oil Pte Ltd (Transocean) between April and September 2016, where Transocean agreed to purchase 50,000 metric tonnes of HSFO on a monthly basis from Lukoil.

His job was to enter the trade into Lukoil’s internal computer system (the ETRM system) whenever Transocean made a HSFO purchase from Lukoil; the operation also required him to hedge the trade to cover Lukoil’s price exposure through the purchase of oil futures or swaps.

However, the DPPs noted Kidd entering the trades in an untimely manner on 18 occasions between April to July 2016 into the ETRM system.

“The delay allowed him to speculate on market conditions, to wait for a more favourable price to hedge the trade. He did so in order to gain a financial advantage for the contract, knowing this would translate into a better bonus for himself if the contract performed well,” they explained.

Kidd backdated the trade in the ETRM system without hedging the trades on the same day on each of the 18 occasions; the delay in performing the hedges caused losses to Lukoil totalling USD 755,260 (equivalent to SGD 1,024,208) for 17 of the trades.

He entered false mark-to-market (MTM) updates into the ETRM system in an attempt to cover the losses and created an impression that there would be future sales of HSFO by Lukoil at a profit; the activity in turn created a false impression of unrealised gains, which were then factored into Lukoil’s daily Profit & Loss statements.

“The net effect within the ETRM system was that the losses caused by the Respondent’s late hedges were effectively negated or mitigated by the false MTM updates. This helped conceal the losses incurred by the Respondent from Lukoil’s Risk department,” added the DPPs.

The legal team reasoned a stiff sentence will act as general deterrence to deter like-minded individuals from engaging in offences of a similar nature and recommended the court to adopt “an uncompromising stance in meting out severe sentences” to protect Singapore’s international recognition as a reputable trading and financial hub.

“Actions from individuals like the Respondent threaten Singapore’s reputation in the bunkering industry and a stiff sentence is therefore warranted to deter others from gaming the system,” they said.

To date, Kidd has not provided restitution to Lukoil.

The High Court has reserved judgment to a later date.

 

Photo credit: Manifold Times
Published: 6 August, 2020

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Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

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July 21, 2026

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Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July). 

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions. 

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Related: Singapore: Hin Leong Founder OK Lim gets jail term slashed to 13.5 years

 

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

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14 hours ago

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July 21, 2026

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RESIZED Drew Beamer

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

  • That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

  • that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
  • that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
  • that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd. 

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Related: Singapore: Director declares Heng Tong Fuels & Shipping’s inability to continue business
Related: Heng Tong Fuels & Shipping in court over DBS Bank bunker tanker loan
Related: Singapore: Bunker tanker “Coastal Neptune” arrested
Related: Heng Tong Fuels & Shipping, Coastal Logistics tankers enter S&P market

 

Photo credit: Drew Beamer
Published: 21 July, 2026

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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July 21, 2026

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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