G-Fuel Pte Ltd v. Gulf Petrochem Pte Ltd: Dispute over Marine Fuel Oil Contract Formation
G-Fuel Pte Ltd sued Gulf Petrochem Pte Ltd in the High Court of Singapore to recover US$2,002,404.78 for marine fuel oil supplied on 8 February 2014. G-Fuel claimed Gulf agreed to a 'sleeving arrangement' to purchase the oil, which Gulf denied. The court, presided over by Senior Judge Tan Lee Meng, found that a contract existed based on the conduct of the parties and the testimony of key witnesses, and ruled in favor of G-Fuel.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
G-Fuel sued Gulf Petrochem for failing to pay for marine fuel oil. The court found a contract existed and ruled in favor of G-Fuel.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| G-Fuel Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | Kelly Yap Ming Kwang, Kelly Toh |
| Gulf Petrochem Pte Ltd | Defendant | Corporation | Claim Dismissed | Lost | Thomas Tan, Loh Chiu Kuan |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tan Lee Meng | Senior Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Kelly Yap Ming Kwang | Oon & Bazul LLP |
| Kelly Toh | Oon & Bazul LLP |
| Thomas Tan | Haridass Ho & Partners |
| Loh Chiu Kuan | Haridass Ho & Partners |
4. Facts
- G-Fuel and Gulf had a sleeving arrangement where Gulf acted as a credit sleeve provider for NER.
- G-Fuel delivered 2,989.467 MT of MFO to NER's barge, The Joaquim, on 8 February 2014.
- G-Fuel invoiced Gulf for US$2,002,404.78 for the MFO.
- Gulf initially confirmed the deal but later denied purchasing the MFO.
- Gulf claimed a deal recap was required for a binding contract, which was not sent.
- Gulf claimed it did not nominate the barge, so G-Fuel assumed the risk.
- Gulf communicated to NER that it had handed over the Joaquim cargo to NER, contradicting its claim that it did not purchase the cargo from G-Fuel.
5. Formal Citations
- G-Fuel Pte Ltd v Gulf Petrochem Pte Ltd, Suit No 588 of 2014, [2016] SGHC 62
6. Timeline
| Date | Event |
|---|---|
| New Energy Resources Pte Ltd expressed interest in purchasing MFO from G-Fuel. | |
| First contract under sleeving arrangement: MFO delivered. | |
| Second contract under sleeving arrangement: MFO delivered. | |
| G-Fuel and Gulf allegedly made a contract for the Joaquim cargo. | |
| G-Fuel delivered the Joaquim cargo. | |
| G-Fuel issued a tax invoice to Gulf for the Joaquim cargo. | |
| Gulf denied purchasing the MFO. | |
| Gulf informed G-Fuel that it was treating the transaction as cancelled. | |
| Trial began. | |
| Trial concluded. | |
| Judgment reserved. |
7. Legal Issues
- Formation of Contract
- Outcome: The court found that a contract was formed between G-Fuel and Gulf Petrochem.
- Category: Substantive
- Sub-Issues:
- Offer
- Acceptance
- Intention to create legal relations
- Breach of Contract
- Outcome: The court found that Gulf Petrochem breached the contract by failing to pay for the MFO.
- Category: Substantive
- Sub-Issues:
- Failure to pay
- Repudiation
8. Remedies Sought
- Monetary Damages
- Interest
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Petrochemical
- Shipping
- Bunkering
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| TTMI Sarl v Statoil ASA | English High Court | Yes | [2011] EWHC 1150 (Comm); [2011] 2 Lloyd's Rep 220 | England and Wales | Cited for the principle that agreements can be formed before a formal recap is sent. |
| Tribune Investment Trust Inc v Soosan Trading Co Ltd | Court of Appeal | Yes | [2000] 2 SLR(R) 407 | Singapore | Cited for the principle that the existence of a contract can be inferred from the correspondence and conduct of the parties. |
| Sembcorp Marine Ltd v PPL Holdings Pte Ltd | Court of Appeal | Yes | [2013] 4 SLR 193 | Singapore | Cited regarding the construction of contract terms and the introduction of new terms. |
| Midlink Development Pte Ltd v The Stansfield Group Pte Ltd | High Court | Yes | [2004] 4 SLR(R) 258 | Singapore | Cited for the principle that subsequent conduct can be relevant in determining whether a contract was concluded. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Marine Fuel Oil
- Sleeving Arrangement
- Deal Recap
- Barge Nomination
- MT
- MFO
- Bunker Delivery Notes
15.2 Keywords
- contract
- marine fuel oil
- sleeving arrangement
- breach of contract
- bunkering
- petrochemicals
16. Subjects
- Contract Law
- Sale of Goods
- Commercial Dispute
17. Areas of Law
- Contract Law
- Commercial Law
- Bunkering Industry