STO partners with Vitol for International Bunkering Project

State Trading Organization (STO) has signed the partnership agreement with Vitol for the International Bunkering Project in Ihavandhippolhu on Wednesday.

At the signing ceremony held on Wednesday morning, the agreement was signed and exchanged between STO CEO and Managing Director Shimad Ibrahim and Vitol Director Jay Ng.

Minister of Economic Development and Trade Mohamed Saeed and Minister of State for Finance Ahmed Mazin graced the signing ceremony as witnesses.

Following the signing ceremony, while highlighting the exclusivity right extended to STO to carry out bunkering activities in the Maldives, Shimad said the corporation is delighted to be partnered with Vitol, one of the largest energy and commodities companies globally.

Shimad also thanked President Dr. Mohamed Muizzu and the Economic Council for their support and guidance, mainly to eliminate the hindrances STO faced in the past to execute the project.

The STO Managing Director said that subequent to the agreement signing, the partners will carry technical and financial feasibility; which will be carried in collaboration with Maldives Ports Limited (MPL) and MNDF Coastguard.

"I am confident that this project would bring [a] lot of economic benefits for the country, including enhanced revenue and profit of STO, enhance dividend that we pay to our shareholders as well as tax revenue to the government," Shimad spoke about the well-rounded economical benefit from the project.

Shimad further said the bunkering project is poised to increase the foreign curreny exchangeability, and reserve. He added the initiative will provide economical benefits and growth opportunities for several small-to-medium enterprises (SMEs) in affiliated sectors as well.

Speaking at the ceremony, Vitol's Director, Jay Ng thanked the Maldives government, and said the relationship between STO and Vitol "goes back" several years.

Jay added that he was delighted to underpin the solid relationship between STO and Vitol with "two remarkable  and landmark transactions" with the Maldives, with the first being the "highly strategic petroleum-product supply contract" and the other being the international bunkering project.

"The bunker business is a global business for Vitol, with significant supply hubs in Singapore, UAE, Turkey, United States and many more. Vital delivered roughly 6% of the global bunker deliver(y) market in 2023, which is roughly 13 million tons out of a global quantity of 230 million tons," Jay detailed about Vitol.

As part of the agreement, Vitol agrees to share "advanced trading knowledge, customer relationships, superior technical and logistic capabilities" with STO.

The Swiss-based Dutch company's portfolio expands to bunkering services delivered to cruise liners, tankers, and other facilities globally. It is also one of the largest bio-marine fuel suppliers in Singapore as well, with a 36% market share.