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Singapore authority revokes bunkering licences of Coteam

Singapore authority revokes bunkering licences of Coteam
The Maritime and Port Authority of Singapore (MPA) has cancelled the bunker supplier and bunker craft operator licences of Coteam Petroleum Trading with effect from 1 April 2014.

Singapore-based Coteam Petroleum was said to have breached the terms and conditions of the bunkering licences by allowing other companies to use its Bunker Delivery Notes (BDN) to supply bunkers.

The homegrown bunker firm was also found to have contravened the terms and conditions of the bunker craft operator licence for delivering bunkers on behalf of an unlicensed company to customers of that company.

The reason behind the cancellation of Coteam Petroleum's licences is not new and several Singapore bunker firms have also had their licences confiscated due to allowing other companies to use their BDNs.

Since June 2012, a total of six Singapore-based bunker firms had their licences revoked by MPA. They are Winbuild Petrofin, Coast-Channels Marine Services, Golden Lights HS Bunkering, Palmstone Petroleum, Excel Petroleum Enterprise and Lian Hoe Leong & Brothers.

“All bunker suppliers operating in the port of Singapore are required to be licensed by MPA. Any bunker supplier or bunker craft operator found to have contravened any terms and conditions of MPA bunkering licences will have their bunkering licence suspended or cancelled,” MPA said in a statement on Tuesday.

As at 1 April 2014, MPA listed a total of 63 licensed, or accredited, bunker suppliers in the port of Singapore.

Seatrade Global understands that a consolidation of Singapore's accredited bunker suppliers is ongoing. The crackdown by the authorities is to stamp out the largely dormant accredited suppliers which have been 'lending out' their government-issued licences to generate profit, rather than actively seeking sales and carrying out their own bunkering operations.

Last year, Singapore recorded bunker sales volume of 42.7m metric tonnes, retaining its position as the world's top bunkering port.

“Singapore's strong performance in bunker sales can be attributed to its strategic location at the crossroads of international trade and the industry structure that results in competitive bunker prices and assured quality and safety standards,” MPA said.