STO and Vitol Forge Alliance for Bunkering Project in Ihavandhippolhu

State Trading Organization (STO) has sealed a partnership deal with Vitol, the world’s largest private energy company, to launch an international bunkering project in Ihavandhippolhu.

The agreement, inked by STO’s Managing Director, Shimad Ibrahim, and Vitol’s Director, Jay Ng, marks a significant step towards expanding business horizons for both entities.

Addressing attendees at the signing ceremony, Shimad highlighted the potential for increased revenue and profits stemming from the venture. He emphasised the project’s dual impact on bolstering the state’s tax revenue and foreign exchange reserves, while also underlining its role in job creation.

Jay, representing Vitol, underscored the close partnership between the two organisations and touted the project as a strategic move towards joint operational success. He pledged Vitol’s commitment to providing the requisite technical and logistical support, leveraging STO’s established customer trust.

Describing the Maldives as an optimal bunkering location due to its strategic maritime positioning, Jay singled out Ihavandhippolhu as a prime hub for vessel refuelling, given the high volume of large vessels passing through the area.

Economic Minister Mohamed Saeed hailed the impending launch of the bunkering service as a crucial step in diversifying the country’s revenue streams beyond tourism. He expressed satisfaction in collaborating on such a significant initiative with a global energy leader.

The urgency for bunkering services in the region is underscored by the daily passage of over 300 vessels near Ihavandhippolhu, with limited service options available. The government’s prior consideration of providing essential services to vessels in the northernmost Maldivian waters reflects the strategic importance of the region.

During a visit to Haa Alif atoll, Minister Saeed announced plans to commence bunkering operations in Ihavandhippolhu by the end of July.

Notably, the previous administration had awarded Qatar-based UrbaCon Trading and Contracting (UCC) the task of providing bunkering services in Ihavandhippolhu in August 2023. However, STO confirmed the expiry of this agreement at the end of last month.