CEO and Managing Director of State Trading Organisation (STO) Shimadh Ibrahim has disclosed that ongoing bunkering projects will significantly increase the government's tax revenue, benefiting stakeholders across the board. He made the remarks during a ceremony to sign a term sheet between STO and the Multinational Energy and Trade Company from the Vitol group, aimed at establishing a bunkering facility at an international standard under the Economic Gateway Project.
The term sheet, signed by STO's CEO Shiham Ibrahim and Vitol Company's Director Jay Ng, outlines the project's requirements and a mutually agreed-upon timeframe for completion.
The government has granted STO exclusivity to operate bunkering facilities in Haa Alif Atoll. CEO Shimadh Ibrahim emphasized the positive economic impacts of establishing a bunkering system, stating that increased tax revenue would benefit not only the government but also businesses and stakeholders, leading to higher profit margins. He highlighted that the bunkering project would bolster the country's foreign reserves and create more job opportunities, thereby supporting the expansion of small and medium-sized enterprises.
Speaking at the event, Vitol Company's Director Jay Ng emphasised Vitol's global reputation as a trusted brand and revealed that the company has hubs in several countries worldwide, including Singapore, the United States, the United Arab Emirates (UAE), and Turkey. Ng noted that Vitol supplied approximately 6% of the global bunkering market last year, equivalent to about 13T out of the 230T global supply.
Under the agreement, Vitol will supply the required amount of oil for services provided by the bunkering facilities in Haa Alif Atoll, including heavy fuel for ships and marine gas oil. Additionally, STO disclosed that arrangements will be made to supply LNG and biofuel based on demand. Furthermore, Vitol will promote Maldives as one of its bunkering hubs as part of the contract.
STO stated that based on the agreement made according to the term sheet, it will serve as the physical bunker supplier for the Maldives Economic Gateway project.