‘Blacklisted’ Trafigura supplying fuel to Malta through bunkering operator

An investigation by The Shift shows that international oil supplier Trafigura, blacklisted by the government in 2013, continues to supply thousands of tonnes of marine fuel to ships in Maltese waters through its subsidiary TFG Marine, based in Singapore.

These operations have been ongoing for a few years. TFG Marine supplies some 40,000 metric tons of marine fuel in Malta every month.

Although The Shift has confirmed that TFG Marine is not licensed to operate bunkering operations in Malta, its fuel is being carried and traded by CN Bunker Fuels Ltd, a Maltese company holding a local bunkering licence issued by the government’s regulator for Energy and Water Services, better known as REWS.

The Maltese operator’s barge, the Endo Sirocco, registered in Limassol, Cyprus, has been regularly monitored coming out of Maltese ports, fully loaded with marine fuel and transferring it onto vessels awaiting outside the Grand Harbour.

Contacted by The Shift, a spokesman for CN Bunker Fuels admitted that the Maltese company has established “a long working relationship” with Trafigura. He denied that it was acting irregularly and that the company was serving as a subcontractor to carry Trafigura oil.

Nick Frendo, one of the owners of CN Bunker Fuels, told The Shift, “There is nothing irregular or unauthorised in our operations.”

“We have a working relationship with TFG Marine, and this was disclosed to REWS. We lease our barges and do the whole operation. We are not acting as Trafigura’s subcontractors,” Frendo insisted.

REWS also confirmed that it was aware of the working relationship between TFG Marine and CN Bunker Fuels, despite the government’s blacklisting. However, they refused to give a straight reply when pressed to state whether such an ongoing operation strictly respected Maltese laws.

According to rules underpinning the issue of bunkering operations, Maltese licensees are not allowed to subcontract their licences.

Industry sources told The Shift that these operations by CN Bunker Fuels are raising eyebrows in the market as the use of a local lincensee by Trafigura to trade its products is being considered by some competitors as a roundabout way to circumvent the law.

“So far, REWS seems to be tolerating this roundabout agreement even if it is doubtful whether the current rules are being strictly respected,” the sources said.

Registered in 2021, CN Bunker Fuels Ltd is a subsidiary of CN Holdings Ltd and forms part of an international group, Endo Ventures Ltd. Its financial arm, Endo Finance plc, is listed on the Malta Stock Exchange and operates various other companies.

Owned by brothers Nicholas and Christopher Frendo, the shareholders have been in the oil trading business for years.

The lucrative bunkering business in Malta is considered to be small and includes just eight licensed operators. Competition is rife, and the industry’s few players closely guard business.

In 2013, following the ‘dirty oil’ scandal, the government backlisted Trafigura and another company, TOTSA, due to allegations of corruption and backhanders to several top Enemalta officials in the procurement of fuel.

While the related court cases are still ongoing, The Shift revealed that both Enemalta and Enemed – a former subsidiary of Enemalta responsible for the importation of fuel – ignored the blacklisting and bought supplies from Trafigura worth millions.

Energy Minister Miriam Dalli, responsible for the sector, confirmed in parliament that the ban on Trafigura was still in place. She could not explain how two companies on her watch defied the blacklisting order.

The regulator, REWS, which issued bunkering licences, is also under Minister Dalli’s remit.