Singapore's Ocean Bunkering Still Operating Amid Hin Leong Uncertainty: Sources

Ocean Bunkering is one of Singapore's largest bunker suppliers by volume. File Image / Pixabay

Ocean Bunkering, the top-three-ranked bunker supplier in Singapore, appears still to be operating this week despite reports of financial troubles for its parent company, oil trading firm Hin Leong.

Three bunker industry sources familiar with the Singapore market told Ship & Bunker that Ocean Bunkering's operations appeared to be continuing this week. 

Last week Bloomberg reported two of Hin Leong's lenders were declining to issue it with new letters of credit, and on Wednesday the news agency followed that story with a report that the oil trading company may owe as much as $3 billion to its lenders.

Lights Remain On

One source said Ocean Bunkering had cut down its operations just to fulfilling previous commitments.

"They aren't offering for new enquiries, but are continuing to supply existing customers," the source said. 

"So it's not shut down with the lights out."

Two other sources said its operations appeared to be continuing as normal, without commenting on whether it was taking on new customers.

About half of the 14 bunker barges listed on Ocean Bunkering's website appear to be moving this week, according to vessel-tracking websites.

Neither Hin Leong nor Ocean Bunkering has made official comment on its financial situation yet, and representatives of Hin Leong were unavailable for comment when contacted by Ship & Bunker Wednesday.

Ocean Bunkering's marine fuel sales volumes in Singapore are likely to total a few million tonnes per year. 

Singapore's Maritime and Port Authority listed it as the country's third-biggest accredited bunker supplier by volume in 2019, down from first place in 2018. It has featured somewhere near the top of the list every year for the past decade.

While a surprise departure of a company of the scale of Ocean Bunkering would be a shock for bunker credit managers, history suggests it would be unlikely to provide a significant shock to bunker supply in the region.

In the aftermath of the departure of top-ten-ranked supplier Tankoil in 2015, other suppliers were able to move in quickly and take over its market share.