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USD $1.49 million bunker credit sleeving dispute between Goodwood and Southernpec reaches conclusion

Universal Alliance, BMS United, Digiland International, Goodwood Associates, Southernpec (Singapore), and Taigu Energy were involved in alleged circular fictitious trades of fuel oil during July 2015.

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Supreme Court

A High Court of the Republic of Singapore Judge on 5 November issued a reserved judgement over a bunker credit sleeving dispute between Goodwood Associates Pte Ltd (Goodwood), Southernpec (Singapore) Pte Ltd (SPPL), Southernpec (Singapore) Shipping Pte Ltd (SPSPL) and other individuals, according to a court document seen by Singapore bunker publication Manifold Times.

Summary

Singapore-based petrochemical wholesale company Goodwood was involved in a credit sleeve operation with several parties in July 2015, where it received a margin of USD 3 per metric tonne (mt) for its intermediary role to facilitate the sales of fuel oil between BMS United Bunkers (Asia) Pte Ltd (BMS) and SPPL.

July Arrangements

Source: High Court of the Republic of Singapore

The transactions for 2,000 metric tonnes (mt) and 1,200 mt of fuel oil were supported by intertank transfer (ITT) certificates and cargo release notices (CRNs).

The Scheme was intended to comprise a circular chain of “back-to-back sales” of non-existent “fuel oil” from one entity in the chain to another lower down the chain, wrote Justice Hoo Sheau Peng.

To start the chain, BMS would provide actual funds to Universal Alliance Limited (UA), another oil trading company, which would then use the funds to make payment to the next fictitious “sub-seller” above it in the chain for an ostensible purchase of fictitious fuel oil, until the funds found their way back to BMS.

According to the view of SPPL’s Fuel Oil Trading Manager Jason Wu Jian Cai (Mr Wu), another motive of the circular fictitious “paper” deals in fuel oil was purportedly to help improve Goodwood’s revenue figures.

“Mr Wu brought the matter up to Mr Xu, who agreed to do so. This was because Mr Xu and Mr Wu had enjoyed a good working relationship with Mr Lee, Mr Lim and Dr Goh Jin Han (Dr Goh), the director and chief executive officer of Digiland, when the latter three were involved with another oil trading company IAG-Pacific Petroleum Pte Ltd.,” stated the court document, reflecting Mr Wu’s account of the alleged operation.

“To that end, Mr Lim came up with a scheme involving a circular series of fictitious trades (the Scheme) with BMS on board. In particular, Mr Lim introduced Mr Mohammad Arif bin Abdol Rahman (Mr Arif), a BMS bunker oil trader, who, according to Mr Wu, would “handle day-to-day running of the Scheme for BMS” with the blessing of his superior, Mr George Markos Kounalakis (Mr Kounalakis), the managing director of BMS.”

Dispute

Issues arose for the July contracts when UA defaulted on its payment to Taigu, which in turn did not pay SPPL; leading to SPPL’s default on its payment obligations to Goodwood.

As such, Goodwood launched a claim against purchaser SPPL for the two July fuel oil sales contracts; it is also claiming against SPSPL which is the guarantor of SPPL for the similar sales contracts.

Goodwood’s case was it had duly performed its obligations under the July Contracts as it relied on the ITT certificates and CRNs as supporting evidence for the transaction.

In response, both SPPL and SPSPL denied liability and claimed the two fuel oil sales contracts were shams; they issued a counterclaim against Goodwood and its associates on the grounds they were making legal claims on the false premise that the July Contracts were genuine.

Southernpec asserts the July Contracts are not enforceable due to them being “sham transactions supported by sham documents” and thus not being subjected to any legal effects.

SPSPL on November 2017 further introduced counterclaims against Goodwood and its associates for lawful and unlawful means conspiracy.

Goodwood on October 2018 started a counterclaim against SPPL for the purchase price based on the July Contracts.

Conclusion

In summary, Justice Hoo concluded the July contracts were not shams and dismissed SPPL’s and SPSPL’s claims based on the tort of conspiracy to injure and decided both were liable to Goodwood under the July Contracts and the SPSPL Guarantee respectively.

“Judgment is granted to Goodwood against SPPL and SPSPL in the sum of US$1,491,669.26 for the invoiced amounts under the July Contracts,” she stated.

“Contractual interest is awarded at the rate of 5.1885% per annum on US$932,177.08 from 30 July 2015 to the date of payment, and at the rate of 5.19075% per annum on US$559,492.18 from 4 August 2015 to the date of payment.”

Note: Full details of the 73-page judgement, including names of all staff involved and further details of the alleged credit sleeving operations, can be found on the original document available from the High Court website here.

 

Photo credit: Manifold Times
Published: 24 November, 2020

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Biofuel

BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

Bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier “Berge Lyngor”, which was bunkered in Singapore in early May.

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BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

BHP and the Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (3 June) said they have blended biofuels from two distinct feedstocks—used cooking oil and waste animal fats —and introduced the lower-emissions marine fuel into a BHP-chartered bulk carrier as part of a pilot project.

The bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier Berge Lyngor, owned and operated by Berge Bulk, transporting BHP iron ore from Western Australia to China. When run on bio-blend, the vessel has the potential to reduce well-to-wake greenhouse gas emissions by approximately 79 per cent per voyage compared to sailing on very low sulphur fuel oil (VLSFO).

The vessel bunkered in Singapore in early May with a B100 bio-blend comprising 50 percent tallow-derived biodiesel, sourced and supplied by HAMR Energy, and 50 per cent used cooking oil (UCOME) supplied by Mitsui & Co Energy Trading Singapore (METS).

Mitsui also blended the fuel and Dan-Bunkering coordinated and executed the bunkering operation, which was performed by Global Energy’s barge MT Maple.

The BHP and GCMD pilot will assess how biofuels from multiple feedstocks can be blended, handled, and introduced under real-world operating conditions using existing used cooking oil bunkering infrastructure.

At the same time, insights from this pilot will help identify solutions to challenges related to fuel quality, handling, traceability, and onboard vessel performance.

Biofuels for global shipping today rely heavily on used cooking oil – a feedstock whose availability is approaching its projected limits. Biofuel from waste animal fats presents a promising option to expand the supply of lower-emissions marine fuels.

The outcomes of the pilot are expected to shed light on the practical steps to integrate biofuel blends from different feedstocks into existing supply chains. The diversity of biofuels will provide shipowners and operators with greater flexibility to optimise fuel procurement based on cost, availability, and lifecycle emissions performance.

Biofuels derived from different feedstocks can exhibit varying properties that may impact operations, including potential corrosion from oxidation, fuel system clogging caused by wax formation, which this pilot aims to assess.

The pilot will trace and verify the biofuel blend’s integrity aimed at bolstering confidence in emissions reductions reporting. The pilot will also provide insights into how robust tracing can support future marine fuel supply chains where biofuels from multiple feedstocks with varying lifecycle greenhouse gas emissions footprints are blended together.

This project is co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund (MINT).

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 3 June, 2026

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Biofuel

NYK starts one-year B100 bio bunker fuel trial on car carrier

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices.

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NYK starts one-year B100 bio bunker fuel trial on car carrier

Japanese shipping firm NYK on Tuesday (2 June) said it has commenced a one-year long-term trial involving the continuous use of 100% biofuel (B100) on an NYK-operated car carrier. 

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices. High-purity biofuels such as B100 are known to be susceptible to degradation from oxygen, light, and heat, raising concerns about the stability of such fuels during long-term use.

In this trial, the biofuel primarily comprises FAME (Fatty Acid Methyl Ester) derived from used cooking oil and similar feedstocks.

The initiative is designed to evaluate the fuel’s effects on the vessel’s equipment and verify operational safety under real-world conditions. 

Through this effort, NYK seeks to accumulate technical expertise that will support the broader use of high-purity biofuels and further accelerate efforts to reduce greenhouse gas (GHG) emissions.

NYK has been advancing the use of biofuels through various initiatives. In 2024, the company conducted a trial using biofuel blend B24 and subsequently expanded practical usage to B30. However, the company said there remains limited global experience with the long-term continuous use of B100.

“By collecting long-term operational data through this trial, NYK aims to accumulate valuable technical insights to support both the safe operation of vessels and the wider adoption of high-purity biofuels,” it said. 

 

Photo credit: NYK
Published: 3 June, 2026

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Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

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VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes. 

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

 

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

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