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SKULD: Title in bunkers – a success story

Marine insurer avoids vessel arrest by creditors looking to claim bunkers from client’s chartered ship.

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The article below is a press release from marine insurance provider Skuld:

This article relates to a situation where the Owners of a vessel en route to the discharge port informed us that the Charterers have not paid hire and they have in addition failed to provide Owners with a bunkering schedule and the vessel needed to divert for bunker stemming.

Owners therefore made all necessary arrangements for bunkering at a South African port but the main concern at the time was that there were a lot of Charterers' creditors in the market, who were expected to attempt to arrest or attach the bunkers on board.

We immediately sought advice from local lawyers in South Africa who confirmed that our fears regarding the potential arrest of bunkers were well founded as various creditors were making enquiries regarding the arrival of the vessel.

Given the imminent risk of vessel's arrest at the anchorage where she was scheduled to stem bunkers, we worked on a "rescue" plan.

The primary requirement for sustaining a successful bunker arrest is to ensure that the bunkers are indeed owned by the party against which the claim lies.

Arresting creditors will ordinarily rely on the standard terms of the NYPE 93 Charter Form to provide prima facie evidence.

The relevant clauses provide as follows:

7. Charterers to provide
The charterers, while the Vessel is on hire, shall provide and pay for all the bunkers except as otherwise agreed ….

9. Bunkers
The Charterers, on delivery, and the Owners on redelivery, shall take over and pay for all fuel and diesel oil remaining on board the vessel as hereunder."

Thus it was suggested that in order to avert an arrest of the bunkers, Owners should try to purchase the remaining bunkers on board before the Vessel entered South African territorial waters.

Provided that the sale was arranged in accordance with the terms and conditions of the Charterparty under English law, and it was concluded on the basis of a fair market value and in terms of a written commercial arms-length agreement between the Owners and Charterers, the transfer of ownership of the bunkers would be legitimate. In such a case the bunkers would not be owned by Charterers at the time of arrest and therefore the arrest would be removed forthwith and the vessel would be free to sail.

In view of the above, and in consultation with English SoIicitors, we put forward a proposal to Charterers seeking their agreement for Owners to take ownership of the bunkers before the vessel's arrival at the port. Charterers indeed provided their agreement and an addendum, reflecting the agreement, was promptly drafted and executed by both parties.

However, given that the executed addendum could only assist Owners in quickly releasing the vessel from a potential arrest, which would still result in delay to the vessel, local lawyers came up with the idea to circulate a letter to all the major shipping law firms in the area drawing their attention to the sale of the bunkers and informing them that the bunkers on board the vessel as well the bunkers that were to be stemmed in port would be for Owners' account. To that effect the letter's purpose was to put the lawyers and their clients on notice that the bunkers on board were not owned by Charterers. Therefore, any arrest or attachment of the bunkers on board would be wrongful and any damages related to the vessel's delay would be sought from the arresting party.

The vessel eventually reached the port and bunkering was completed uneventfully.

We have thereafter been informed that the letter had deterred specific creditors from applying for bunkers' arrest during the vessel's call in the South African Port.

Special credit should be given to Graig Cunningham and Lana Jacobs from Bowmans Gilfillan (Cape Town) for their prompt and efficient assistance provided in relation to this matter.

Published: 21 March, 2018
 

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Legal

Shell MGO bunker heist: Co-conspirator receives 302-month jail sentence

Abdul Latif Bin Ibrahim and accomplices siphoned over 150,000 mt of gasoil worth at least USD 74 million from Shell Pukom between August 2014 and January 2018.

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A Judge at the High Court of the Republic of Singapore on Monday (7 July) sentenced Abdul Latif Bin Ibrahim, a former Process Technician working at Shell Pulau Bukom, to a jail term of 25 years and two months (302 months), reported the Straits Times.

Latif pleaded guilty to a total of 30 charges – 20 charges under criminal breach of trust and 10 charges under money laundering – while consenting to have 34 remaining charges taken into consideration for the purposes of sentencing.

He is due to start his prison sentence on 30 September 2025.

Court documents obtained by Singapore bunkering publication Manifold Times showed Latif, with the help of other rogue Shell employees, siphoning over 150,000 metric tonnes (mt) of gasoil valued at least USD 74,469,000 (approximately SGD 100,601,000) from Shell Eastern Petroleum Pte Ltd’s (Shell) Pulau Bukom facility between August 2014 and January 2018.

Latif was arrested on 7 January 2018.

Investigations found him receiving a total of at least about SGD 7 million in criminal benefits between 2014 to 2018, of which he spent these monies on luxury watches, foreign property, cars, amongst others.

Authorities have seized assets worth approximately SGD 7.67 million from Latif; amongst recovered are:

  • One Rolex Daytona (leather strap) watch worth SGD 28,800
  • One Frank Muller watch worth SGD 7,000
  • One Frank Muller watch worth SGD 8,000
  • 03 packs of 1,000 pcs of SGD 1,000 notes worth SGD 3 million
  • 991 pcs of 1,000 pcs of SGD 1,000 notes worth SGD 991,000
  • 400 pcs of 1,000 pcs of SGD 1,000 notes worth SGD 400,000
  • Sales balance proceeds of BMW M5 worth SGD 174,300
  • Sales balance proceeds of Mercedes Benz E43 worth SGD 276,200
  • Sales balance proceeds of Aston Martin DBS Coupe worth SGD 338,200
  • Sale proceeds from property at St Martin’s Dr worth SGD 670,000
  • Sale proceeds from property at Suites@Braddell worth SGD 557,200

Earlier coverage of developments by Manifold Times regarding the Shell MGO bunker heist can be found below:

Related: Shell MGO bunker heist: Man sentenced to jail for hindering police investigations
Related: Shell MGO bunker heist: Bunker clerk gets jail time for helping Sentek acquire misappropriated fuel
Related: Shell MGO bunker heist: Bunker clerk pleads guilty to helping Sentek acquire misappropriated fuel
Related: Shell MGO bunker heist: Ex-Shell employees sentenced to more than 23 years in prison each
Related: Shell MGO bunker heist: Ex-Shell employees plead guilty to multiple offences
Related: Shell MGO bunker heist: Ex-Shell employee receives over 16-year jail sentence
Related: Shell MGO bunker heist: Ex-Intertek Surveyor sentenced to four months’ jail for corruption
Related: Shell MGO bunker heist: Ex-Intertek Surveyor pleads guilty to corruption charge
Related: Shell MGO bunker heist: Shell Process Technician receives 195-month jail sentence
Related: Shell MGO bunker heist: Police seize property, cars, watches from ex-Shell Bukom Process Technician
Related: Shell MGO bunker heist: Ex-Shell blending specialist jailed over USD 956,000 worth of misappropriated gasoil
Related: Shell MGO bunker heist: Former Intertek, Inspectorate surveyors receive fines, jail sentences
Related: Shell MGO bunker heist: Ex-CCIC Singapore surveyor pleads guilty to misconduct, receiving USD 12k in bribes
Related: Shell MGO bunker heist: Ex-Process Technician receives 184-month prison sentence over illicit involvement
Related: Shell MGO bunker heist: Syndicate member’s nephew jailed over concealment of safe containing valuables
Related: Shell MGO bunker heist: 12 former surveyors from Intertek, Inspectorate, CCIC, SGS charged for corruption
Related: Shell MGO bunker heist: Former Shore Loading Officer receives 29-year jail sentence over total 85 charges
Related: Shell MGO bunker heist: Ex-Process Technician received minimum SGD 735,000 in benefits, faces 43 charges
Related: Shell MGO bunker heist: Ex-Shell employee admits leading role in illicit operation
Related: Shell MGO bunker heist: Sentek ex-Director faces 40 fresh charges
Related: Shell MGO bunker heist: Two former Shell employees jailed over theft
Related: Shell MGO bunker heist: High Court affirms ‘Prime South’ forfeiture to Singapore State
Related: Shell MGO bunker heist: Three ex-Shell employees charged with bribing surveyors
Related: Shell MGO bunker heist: Second ex-Shell employee pleads guilty to nine charges
Related: Shell MGO bunker heist: First ex-Shell employee to plead guilty over involvement
Related: Shell MGO bunker heist: Director of Singapore bunkering firm released from police custody
Related: Shell MGO bunker heist: Oil tanker ‘Prime South’ forfeited by State Courts of Singapore
Related: Shell MGO bunker heist: Director of Singapore bunkering firm face charge at State Courts
Related: Shell Singapore oil heist: Third offender pleads guilty for gas oil theft
Related: Captain of “Prime South” jailed in Shell Pulau Bukom gas oil theft
Related: Shell Singapore oil heist: Ex-Chief Officer of Prime South jailed
Related: Singapore: Shell MGO bunker heist amount balloons to USD$142 million
Related: Shell MGO bunker heist update: Fresh charges issued at Singapore court
Related: Shell Singapore oil heist: More charges issued at court
Related: Shell Singapore oil heist: Breakdown of stolen oil cargoes
Related: Intertek Singapore employee among Shell oil heist suspects

 

Photo credit: Manifold Times
Published: 8 July 2025

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Vessel Arrest

Malaysia: MMEA detains tanker transporting 62,000 litres of diesel off Port Klang

Vessel was operated by a 43-year-old Indonesia captain with a crew of six Indonesians; captain failed to present any documents permitting the transport of the diesel which is a controlled item.

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Malaysia: MMEA detains tanker carrying 62,000 litres of diesel off Port Klang

The Malaysian Maritime Enforcement Agency (MMEA) on Friday (4 July) said it detained a tanker carrying 62,000 litres of diesel without valid documentation off Port Klang on 3 July. 

Selangor MMEA director Maritime Captain Abdul Muhaimin Muhammad Salleh said the tanker was detained at about one nautical mile west of Tanjung Harapan at 1.30pm during a routine patrol in Selangor waters. 

Initial checks showed the tanker was operated by a 43-year-old Indonesia captain with a crew of six, aged between 21 and 51, who were also Indonesians. All of them had complete identification documents. 

However, the captain failed to present any documents permitting the transport of the diesel cargo which is a controlled item. 

With that, a detention order was issued for the tanker. Both the captain and second engineer were arrested and were brought to the marine police jetty in Pulau Indah for further investigation. 

The case will be investigated under the Control of Supplies Act 1961 for failure to provide a permit or special licences from the Domestic Trade and Cost of Living Ministry to possess, store or transport controlled goods.  

 

Photo credit: Malaysian Maritime Enforcement Agency
Published: 7 July, 2025

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Winding up

Singapore: Tiger LNG Shipping Pte Ltd to be wound up voluntarily

A liquidator was also appointed for the company at an extraordinary general meeting held on 30 June, according to Government Gazette notice.

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RESIZED Drew Beamer

Several resolutions for Tiger LNG Shipping Pte Ltd were made during an extraordinary general meeting held on 30 June, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

AS SPECIAL RESOLUTIONS

Resolved:

  • That the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018, and that Mr Lum Chi Lup Benny of 190 Middle Road, #17-05 Fortune Centre, Singapore 188979, be and is hereby appointed as Liquidator for the purpose of such winding-up;
  • That the Liquidator be and is hereby authorised (when and as soon as the debts and liabilities of the Company have been paid and satisfied or duly provided for) to distribute the assets in specie or kind among the contributories of the Company in accordance with their respective rights and interests; and
  • That the Liquidator of the Company be and is hereby authorised to exercise any of the powers given by Sections 144(1)(b), (c), (d), (e), (f) and (g) of the Insolvency, Restructuring and Dissolution Act 2018.

AS ORDINARY RESOLUTIONS

Resolved:

  • That the Liquidator, Mr Lum Chi Lup Benny be remunerated for the work of winding-up the Company on his normal scale of fees and that the Liquidator be indemnified by the Company against all costs, charges, losses, expenses and liabilities incurred or sustained by him in the execution and discharge of his duties in relation thereto.
  • That pursuant to Section 195(2) of the Insolvency, Restructuring and Dissolution Act 2018, the books, accounts and documents of the Company and those of the Liquidator shall be retained for a period of 5 years after the dissolution of the Company and, at the expiration of that period, the documents may be destroyed.

 

Photo credit: Drew Beamer
Published: 7 July, 2025

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