Thu 22 Jul 2010, 07:21 GMT

BP files lawsuit against former staff


Lawsuit filed for breach of contract against former fuel oil, marine fuel staff in Singapore.



A lawsuit for breach of contract has been filed by oil major BP against six former members of staff who formed part of the company's fuel oil and marine fuels teams in Singapore, according to industry sources.

The Singapore High Court has issued a writ of summons against six former BP employees who left the company in the last two months.

They include former BP global fuel oil trading head Quek Chin Thean and the former head of its marine fuels business in Asia, Clarence Chang. The names of Senior traders John Foo and Paul John Bradshaw are also said to be included in the court documents.

As many as 18 traders were reported to have left BP during a wave of resignations that extended internationally with traders leaving their posts at BP's offices in the United States and the UK in addition to trading desk and support staff in Singapore.

In the United States, BP's fuel oil trading desk was said to have been left with one derivatives trader following the resignation of Tim Gawne, fuel oil team leader, another physical trader and a third who traded derivatives. In the UK, London team head Chris Paine also resigned from his position.

Industry sources said in June that a number of former BP fuel oil traders would be joining Chinese trading firm Brightoil Petroleum. They included Quek Chin Thean, ex-Asia team leader Edmund Lau and U.S. fuel oil team leader Tim Gawne.

Other members of the trading team and support staff who left the oil major were also said to be joining Hong Kong-listed Brightoil.

Meanwhile, London fuel oil team leader Chris Paine, was said to be joining Vitol, whilst two ex-U.S. traders would begin working for Mercuria and Noble Group, sources said.

Earlier this month BP confirmed that it was carrying out an investigation into the reasons behind the resignations from its fuel oil trading desk and support team in Singapore.

The company has already replaced key staff in Singapore with the appointment of Marcus Cooper as new global fuel oil trading head. He was previously employed as the oil major's director of crude trading and was also in charge of BP's global gasoline trading operations in the United States.

The new head of BP's regional fuel oil desk is experienced trader Stephen Ng and the new leader of the Asia marine fuels division is Carlos Torres.

In addition to the three key appointments, BP has also moved two junior staff into the Asia fuel oil desk as traders, according to market sources.

BP has been the leading supplier in Singapore for the past seven years. Bunker sales in Singapore - the world's leading bunker port - reached a new record of 36.5 million tonnes in 2009 and are on course to break through the 40 million tonne barrier this year following sales of 20 million tonnes during the first six months of 2010.

The oil major is estimated to have a market share of approximately 10 percent of marine fuel sales in the city-state. It has also been a key player in the fuel oil cargo trading market for more than a decade.


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