News

Project to develop bunkering facility to begin in mid-year

State Trading Organization (STO) has stated that the project to develop a bunkering facility will begin in the middle of this year.

Speaking to PSM News, Managing Director Shimad Ibrahim said that fuel is one of the main businesses of STO, which includes selling diesel, petrol and aviation fuel. As such, he described bunkering as one of the most significant investments that can be made, adding that STO will have the opportunity to begin bunkering services and re-export fuel abroad by taking advantage of the strategic location of the Maldives.

Additionally, Shimad said that STO will provide the aforementioned three types of fuel as well as fuel oil and other fuel products as part of its bunkering services. He said the company is currently involved in the planning process, which includes formulating the legal framework and conducting the technical feasibility. He expects the fieldwork to begin in the middle of this year.

In August last year, STO signed a Memorandum of Understanding (MOU) with Qatar-based UrbaCon Trading and Contracting (UCC) to develop a bunkering facility in the northernmost region of the Maldives. STO stated that the partnership concerns the formation and development of a bunkering facility and national strategic oil storage in Haa Alifu Atoll, representing a significant step forward on its shared path to advancement and expansion in international trade.