OW Bunker: Reports Indicate Dynamic Oil Trading Had Another Significant Debtor

In November, Tankoil was reported to have been the principal recipient of credit extended by DOT.

Reports in Danish media Monday have indicated that Dynamic Oil Trading (DOT), the Singapore-based subsidiary of now-bankrupt OW Bunker, had another significant debtor in addition to Tankoil Marine Services (Tankoil).

In November, Tankoil was reported to have been the principal recipient of credit extended by DOT under a practice known as "credit sleeving", but Denmark's Børsen, Jyllands-Posten, and Finans Monday all reported Petrotec Pte Ltd (Petrotec) was also a recipient of significant DOT credit.

Pernille Bigaard, a lawyer and trustee for the OW Bunker estate, said there had been substantial trade between Dynamic Oil Trading and Petrotec, and although it was not to the same extent as with Tankoil, it was nevertheless significant.

Petrotec is also based in Singapore, with one source understood to be familiar with the matter describing it as "the ancestor of Tankoil".

However, while Tankoil was Singapore's sixth largest supplier by volume in 2014, Petrotec did not appear on the Maritime and Port Authority of Singapore (MPA)'s list of accredited bunker suppliers.

Finans noted that sources indicated that Dennis Tan was a director of both Tankoil and Petrotec, while social networking site LinkedIn lists a profile for a Dennis Tan who is a Director of both Petrotec Pte Ltd from January 2007 to present, and Tankoil Marine Services Pte Ltd from March 2013 to present.

Last month the MPA revoked the bunker supplier and bunker craft operator licences of Tankoil and Hong Fatt Oil Trading Pte Ltd (Hong Fatt Oil Trading), citing discrepancies and wrongful declarations in their bunker records, as well as unauthorised bunker transfers.

In November last year, in the days prior to its bankruptcy, OW Bunker described DOTs credit activities as a $125 million fraud, while persons acting on behalf of DOT have said that while there might have been an "untimely lack of care" nothing illegal took place and that OW Bunker management knew about DOTs dealings with Tankoil.