BP sues former fuel oil, bunker staff -court papers
SINGAPORE (Reuters) - BP Plc has filed a lawsuit for breach of contract against six former employees of its global fuel oil and Asia bunker team who have quit since the end of May, according to court documents and company sources.
A writ of summons was filed at the Singapore High Court on July 5 against the six former senior BP staff.
When contacted on Thursday, a BP spokeswoman declined to comment beyond saying an investigation was going on.
A spokeswoman for the six said they believe they have done no wrong and will vigorously defend themselves against the lawsuit, adding that they will file their defense in mid-August.
"BP's response has been a shock and disappointment for the individuals concerned, who have all served the firm loyally for a long period of time," she said.
"It is strange that BP says investigations are underway when they have filed a lawsuit, effectively pre-judging the individuals before investigations are complete. The reasons behind their departure from BP will no doubt be fully detailed in their defense."
The six are alleged to have breached their fiduciary duties to BP, breached their employment contracts, including their fidelity duties, as well misusing confidential information, the court documents showed.
The defendants to the suit include BP's former head of global fuel oil trading, Quek Chin Thean, the Asia head of its marine fuels business, Clarence Chang, trading manager John Foo, head of operations for all oil products in Asia, Paul John Bradshaw, legal manager Simon Cheong and administrative executive Laura Kuan, the documents showed.
FORENSIC INVESTIGATION ONGOING
In the suit, BP said Quek and Cheong engineered the mass departures of the 20 staff and conducted negotiations with Hong Kong-listed Brightoil, which it described as a direct competitor, about moving over and setting up a competing business from January this year, while employed by the oil major.
The company said it conducted an investigation, using forensic analysis of electronic equipment, and uncovered evidence of e-mail correspondence between the six as well as with Brightoil chairman Raymond Sit.
The correspondence showed that they coordinated the mass resignations, discussed terms for salary, share schemes and the buyout bonuses as well as diverting business away from BP, court documents showed.
"While still in the plaintiff's (BP) employ, the group of employees who were leaving to join Brightoil were targeting the plaintiff's customers and intending to lure them away for the benefit of the new Brightoil company," BP said in the filing.
Sources familiar with the matter said the forensic investigation is still ongoing and more evidence is expected to be lodged with the court in the next week and more names could be added to the lawsuit.
Reuters had reported that at least 18 staff, including three regional team leaders in Singapore, London and the United States had quit over the past month, with most expected to join Brightoil, a China-based firm that has been expanding its trading capabilities over the past year.
The court documents showed that 20 staff, from Quek to junior personnel such as operators and analysts, had resigned from Singapore alone, between May 17 and June 7.
The major has since replaced some key staff, including appointing a new global fuel oil trading head, new regional team leaders for its fuel oil desk in Singapore, London and the U.S. as well as for its Asia marine fuels division.
BP is the largest marine fuels supplier by volume in Singapore, the world's top bunker port, accounting for about 10 percent of the city-state's average monthly volumes of 3.2-3.3 million tonnes.
It has also been a major player in the fuel oil cargo trading market for more than a decade, regularly mounting profitable trading plays, prior to the resignations of their long-serving team.
(Editing by Ramthan Hussain and Clarence Fernandez)