Tue 9 Dec 2008 08:21

Lanka Bunkering demands $1m payment


Bunker supplier demands almost $1 million from competitors over 2004 CUF incident.



Sri Lankan firm Lanka Bunkering Services (Pvt) Ltd. (LBS) is said to be demanding a payment of almost US$1 million from John Keells Holdings(JKH) and Lanka Marine Services (LMS), after alleging that it was prevented from delivering marine fuel to ships in Colombo in 2004, The Sunday Times reports.

A payment of US$935,873.53 together with interest at 21% from 8th August 2004 is said to have been demanded by LBS in a letter of demand which was sent to JKH and LMS last week.

The letter reportedly claims that both JKH and LMS prevented LBS from delivering 58,229.133 metric tonnes of marine fuel carried on board a motor tanker named 'Serifos' lying within the port of Colombo.

LBS said the Serifos had been chartered to transport the aforementioned quantity of marine fuel to Sri Lanka, which had been purchased at a cost of approximately US$9 million. The company said it intended to transfer the bunker fuel to Colombo and then use smaller tankers owned by Sri Lanka Shipping Co. Ltd to provide bunkering services to ships calling at the port.

However, LBS alleges that the Serifos was denied a berth upon arrival at the port of Colombo on or around 8th July 2004 and subsequently prevented from carrying out bunker deliveries or transferring the fuel to other vessels.

LBS reportedly claims JKH and/or LMS had contrived to prevent them from delivering bunker fuel to ships in Colombo by compelling the Sri Lanka Ports Authority (SLPA) to invoke the terms of a Common User Facility (CUF) Agreement entered into between the government, the Ceylon Petroleum Corporation (CPC), the SLPA and LMS.

It is claimed that companies engaged in bunkering activities in Colombo were compelled to use the CUF, an agreement which the Supreme Court ruled as being illegal in its judgement in July 2008.

LBS has reportedly said that action will be filed in the District Court of Colombo if JKH and LMS fail to respond to the letter of demand within a period of two weeks from the date of receipt.


CEO, Fredrik Witte and CFO, Mette Rokne Hanestad. Corvus Energy raises $60m from consortium for maritime battery expansion  

Norwegian energy storage supplier secures growth capital to accelerate zero-emission shipping solutions.

Indian Register of Shipping hosts at LISW 2025. Shipping industry warned nuclear power is essential to meet 2050 net zero targets  

Experts say government backing is needed for nuclear investment.

Rendering of LNG bunkering vessel Avenir TBN. ExxonMobil enters LNG bunkering with two vessels planned for 2027  

Energy company to charter vessels from Avenir LNG and Evalend Shipping for marine fuel operations.

Logos of international maritime associations supporting IMO Net Zero Framework. Shipping associations back IMO Net-Zero Framework ahead of key vote  

Seven international associations urge governments to adopt comprehensive decarbonisation rules at IMO meeting.

Concept illustration of biofuel and renewable energy production. Study claims biofuels emit 16% more CO2 than fossil fuels they replace  

Transport & Environment report challenges biofuels as climate solution ahead of COP30.

Rendering of Green Ammonia FPSO. ABB to supply automation systems for floating green ammonia production vessel  

Technology firm signs agreement with SwitcH2 for Portuguese offshore facility producing 243,000 tonnes annually.

VPS launches VeriSphere digital platform. VPS launches Verisphere digital platform to streamline marine fuel decarbonisation tools  

New ecosystem connects multiple maritime emissions solutions through single user interface.

Wallenius Sol vessel Botnia Enabler. Wallenius Sol joins Gasum's FuelEU Maritime compliance pool as bio-LNG generator  

Partnership aims to help shipping companies meet EU carbon intensity requirements through bio-LNG pooling.

IAPH Clean Marine Fuels Working Group. IAPH launches products portal with ammonia bunker safety checklist  

Port association releases industry-first ammonia fuel checklist alongside updated tools for alternative marine fuels.

Berkel AHK Logo. Berkel AHK joins Global Ethanol Association as founding member  

German ethanol producer becomes founding member of industry association focused on marine fuel applications.





 Recommended