Disclosing that reclamation of Maagiri lagoon will begin within 18 month to ease the difficulties faced by STO in storing oil, MD of the company, Shimadh stated that these difficulties are mostly due to the insufficient storage space provided by Funadhoo.
Managing Director of State Trading Organization (STO), Shimad Ibrahim has declared that the reclamation of Maagiri lagoon located near Kaafu atoll Thilafushi will be initiated within 18 months and the area will be developed to stow the company’s oil.
In a special interview with Mihaaru conducted this week, Shimad stated that oil business generates the most income for the company. Revealing that they have been facing some issues in storing oil, he explained that there are difficulties in making space for additional storage premises due to insufficient space in Kaafu atoll Funadhoo, which is situated near Male' City.
“For example, a vessel of 50,000 tons or 80,000 tons cannot be imported. Especially because Funadhoo is small,” he said.
Shimad highlighted that relocating Funadhoo’s oil storage and transforming the island into a financial center is among the plans of this administration.
He asserted that although time is required to reclaim the Maagiri lagoon for the purposes, a solution will be found to the issues faced in storing oil. He further remarked that a terminal of high standards will also be built in this new location with the aid of industry experts.
“Increasing capacity is very important for the business. Overall cost will be significantly reduced.” said Shimad.
Presently, there are 50,000 tons of diesel and 10,000 tons of petrol in storage in Funadhoo.
The majority of the oil imported by STO is used to supply the people with electricity.
The company had generated an income of MVR 13.4 billion (USD 867,719,144.00) during the year 2022. Shimad stated that despite oil business reigning over most of the company’s income, the profit generated is quite low due to the use of a large portion of the imported oil for electricity services.
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