Ihavandhippolhu bunkering project awarded to largest energy company in the world

State Trading Organization (STO) has signed an agreement with Vitol, the world’s largest private energy company to establish an international bunkering project in Ihavandhippolhu.

The agreement was signed on behalf of STO by their Managing Director, Shimad Ibrahim and Vitol’s Director, Jay Ng.

Speaking at the ceremony, Shimad said that it would pave the way for the company to increase its revenue and profits. He also noted that the project will increase tax revenue of the state along with its foreign exchange reserve, while also highlighting that it will create more employment opportunities.

Vitol’s Director Jay stated that STO is closely associated with them and a big project such as this is the best way forward for the two companies to jointly operate. Since STO has earned a lot of customer trust, he also said that Vitol will provide the necessary technical and logistical support required for the project.

According to Jay, the Maldives is the most ideal country for bunkering. “Since it is an area where many large vessels travel, Ihanvandhippolhu will be a popular location as the main bunkering hub,” he said.

Economic Minister Mohamed Saeed described that the launch of the bunkering service will be an imperative step in boosting the country’s revenue besides tourism. He said that it was a pleasure to run such a large-scale project with the world’s largest energy company.

More than 300 new ships sail daily near Ihavandhippolhu, however, there is not much option to provide services to the ships in the area. Earlier, Minister Saeed stated that the government had considered providing bunkering and other vital services to vessels in the northernmost part of the Maldives.

During his recent trip to Haa Alif atoll, Minister Saeed announced that the bunkering service would commence in Ihavandhippolhu by the end of July.

In August 2023, the previous administration also awarded Qatar-based, UrbaCon Trading and Contracting (UCC) to work on providing bunkering services in Ihavandhippolhu. However, the agreement expired at the end of last month according to STO.