Bunkering association calls for observation of rules among Maltese players

The association representing Maltese bunkering operators, MOBA, has expressed concerns regarding reports that an international oil giant, Trafigura, was using a Maltese operator to circumvent regulatory rules and offer services in Maltese waters.

MOBA urged the authorities, particularly the Regulatory Environment and Water Services (REWS), to ensure compliance with all relevant regulations.

The Shift in a report last October revealed that Trafigura, a blacklisted company, was allegedly utilising the Maltese licence of CN Bunker Fuels to bypass regulations and distribute thousands of tons of marine fuel to vessels in Maltese waters.

MOBA acknowledged awareness of these concerns and reiterated that the activities attributed to Trafigura and CN Bunker Fuels were illegal and could potentially constitute a criminal offence if proven.

The association emphasised its commitment to transparency and adherence to regulatory requirements, aiming to maintain a fair playing field within the industry.

MOBA stated, “We are aware of concerns raised regarding the use of Bunker Delivery Notes (BDNs) linked to non-licensed entities. While we do not have an enforcement role, we encourage all industry players to operate in full compliance with regulatory provisions.”

Under Maltese bunkering rules, companies are prohibited from subcontracting their licences.

An investigation by The Shift disclosed that, while Trafigura operates under the name of Singapore-based TFG Marine and is not licensed to operate in Malta, it was using a barge of a Maltese operator, CN Bunker Fuels, to sell fuel illegally.

The investigation uncovered that the barge, Endo Scirocco, registered in Limassol, Cyprus, was frequently monitored leaving Maltese ports fully loaded with marine fuel and transferring it to ships waiting outside the Grand Harbour.

Compounding the issue, Bunker Delivery Notes (BDNs), which serve as an invoice for the consignments, were being issued directly by the unlicensed operator, TFG Marine.

Nick Frendo, one of the owners of CN Bunker Fuels, denied that his company was subcontracting its licence, which is prohibited under Maltese regulations. He stated that there was an agreement with Trafigura that REWS had approved.

REWS confirmed its awareness of the situation but declined to comment on whether the activities were in strict compliance with Maltese laws.

Industry sources accused REWS of permitting CN Bunker Fuels to bypass regulations, putting local competitors at a disadvantage. However, Frendo responded that these claims stemmed from rival competitors’ jealousy.

Following the publication of The Shift’s investigation, Trafigura stopped supplying fuel through CN Bunker Fuels, at least for now.