SINGAPORE - Panoil Petroleum will no longer be allowed to operate as a bunker craft operator in the Port of Singapore, the Maritime and Port Authority of Singapore (MPA) said on Monday.

MPA has revoked Panoil's bunker craft operator licence with effect from Monday (Aug 14), after conducting checks on the company between January and March this year.

The checks - part of the port regulator's ongoing regulatory efforts to ensure the safety, reliability and quality of bunker supplies in Singapore - revealed that unauthorised alterations were made on board five bunker tankers operated by Panoil Petroleum.

"The unauthorised alterations were made on the pipelines of the bunker tankers between the mass flow meters (MFM) and the flow boom. Such alterations allow bunker fuel that have been measured by the MFM to be siphoned out and undermines the accuracy of the readings from the MFM system," said MPA in a statement.

"The unauthorised alterations breached the terms and conditions of Panoil Petroleum's bunker craft operator licence."

MPA said it will take firm action against any licensee who has acted in contravention of their licences, including suspending or revoking their bunker licences.