Singapore's Xihe Group, which last month parted ways with Hin Leong Trading owner Lim Oon Kuin, has made a first step in its restructuring by appointing V.Group as technical and commercial manager for 16 modern tankers.

Interim Xihe chief executive Kenny Lim said: “This strategic partnership kick-starts Xihe’s engagement of independent, world-class professional companies to provide technical and commercial management for our vessels.”

Xihe, which controls a fleet of 136 vessels, was the tanker-owning affiliate of the Lim-controlled Hin Leong and its shipping company Ocean Tankers.

But it parted ways with Lim Oon Kuin in July, saying he and his children were no longer part of the management team

It appointed a new independent management structure headed by Kenny Lim, with Desmond Chong as commercial director and Zhang Yujie as vice president of fleet management.

The management restructuring came after an attempt by Hin Leong creditor OCBC Bank to have key group company Xihe Holdings put under judicial management was adjourned.

Kenny Lim said it decided to appoint V.Group after it was pleased with the experience of the shipmanager taking its 108,953-dwt tanker Ocean Queen (built 2008) under technical management when it became one of the first ships to be redelivered from Ocean Tankers.

The remaining 15 vessels, all anchored off Singapore waters, will follow suit in the coming weeks, he added. They were not named.

V.Group chief executive Graham Westgarth said: “By leveraging our operating model, we are confident we can offer the depth and scale to manage Xihe’s fleet safely and efficiently, thus maximising the value of their assets.”

Xihe said it would also benefit from using V.Group’s ShipSure IT system, which promotes efficient operations and has 15 years’ worth of data to facilitate benchmarking and vessel optimisation.

The privately owned Xihe Group, comprising Xihe Holdings, Xihe Capital and its subsidiaries, has been a global maritime transporter of fuels since 1990.