World Bunkering > News > Spring 2011 > Business as usual?

2010 was in some ways a difficult year for many of the large trading companies, with results, particularly in the third quarter, considerably down from what had been expected. Despite the changes, though, growth has continued, with several major players setting up new offices which will enable them to expand their global reach.

Enter the dragon?

Perhaps the biggest shake-up was Brightoil’s entry onto the Singapore fuel oil trading scene – and the subsequent move of several of BP’s Singapore-based traders to their Chinese rival, prompting a court case which is still ongoing. In November, Brightoil announced that it had secured a $4 billion loan facility from China Development bank. The deal would provide support for mergers and acquisitions, expansion of its petroleum products trading business, and the purchase of more tankers, the company said – including the expansion of its trading business beyond the existing fuel oil desks. The company has expanded rapidly over the last two years, including setting up bunker trading operations in Rotterdam and Houston, and further expansion in these locations seems likely.

Chemoil acquires OceanConnect

In a move which will both strengthen its own hand and lead to further consolidation within the bunker trading market, Chemoil recently purchased OceanConnect Holdings Marine Fuel Group, which employed 90 brokers in 13 locations around the world. According to a statement from Chemoil, the acquisition included a significant number of key MFG employees located in London, New York, Tokyo, Korea, and Dubai, handling an annual sales volume of approximately 8.5 million metric tonnes. The deal also includes OCH’s marine fuel business, and its independent online bunker auction portal. According to Mike Bandy, ceo of Chemoil before the takeover: “[The move] will substantially expand Chemoil’s presence in several key markets and strengthen its competitive advantage in providing speedy, cost-effective and highly reliable fuel supplies to shipping operators worldwide.”

OceanConnect’s ceo Thomas Reilly took over from Mike Bandy as Chemoil ceo. Mr Bandy will remain as chairman and nonindependent director “to ensure a smooth leadership transition”. Mr Reilly was previously vice president for Fuel and Marine Marketing LLC, where he was responsible for bunkering and fuel trading in the Pacific Rim and the Middle East regions.

It was announced at the end of January that Keith Richardson, who was appointed Chemoil’s global business management for marine fuel last year, had left the company. However, Chemoil emphasised that this would not mean any changes to Chemoil’s senior management.

OW Bunker moves into Switzerland

OW Bunker has established a new European bunker trading subsidiary, OW Bunker Trading SA, based in Geneva, Switzerland. The move is intended to further expand trading activities in Northern and Western Europe, the north Atlantic and the Mediterranean. According to a statement from the company, the move is part of a natural process that sees OW Bunker further enhance its capabilities and presence within the supply chain of the global bunker market. With its significant physical presence in Northern and Western Europe, the development creates one of the strongest cargo trading divisions within the bunkering industry and reinforces the company’s position as one of the world’s leading organisations in the fuel oil market, OW said.

Jane Dahl Christensen, executive vice president, OW Bunker said: “The establishment of OW Bunker Trading SA further strengthens our existing cargo trading team, building on the significant success that they have already generated to create an operation with significant depth and even more experience. Fundamentally, it signals OW Bunker’s intention to continue its strategic expansion into sectors that present real opportunities, where our industry knowledge and understanding of the global oil markets, as well as our worldwide infrastructure, financial strength and trading expertise can act as a channel for further growth.”

Peninsula opens Japan trading office

Peninsula Petroleum are also looking to expand the geographical base of their operations, having opened a new office in Tokyo in July last year to develop sales in the Japan and South Korean area. The office is headed by Kazushi Fujisawa, who joined Peninsula from PetroChina, where he was a fuel oil trader. According to Bloomberg, he is targeting bunker sales of some 1 million tonnes per annum across both markets.