In a significant move to bolster the Maldives revenue streams beyond tourism, the State Trading Organization (STO) has sealed a groundbreaking agreement with Vitol, the world’s largest private energy company, to establish an international bunkering project in Ihavandhippolhu atoll. Economic Minister H.E Mohamed Saeed hailed the collaboration as a pivotal step forward during the signing ceremony.
The agreement, inked by STO Managing Director Shimad Ibrahim and Vitol’s Director Jay Ng, marks a strategic partnership aimed at enhancing the country’s economic outlook. Speaking at the ceremony, Shimad emphasized the potential for increased revenue and profits, highlighting the project’s role in expanding tax revenue, bolstering foreign exchange reserves, and creating new job opportunities.
Vitol’s Director, Jay Ng, echoed the sentiment of collaboration, emphasizing STO’s established customer trust and Vitol’s commitment to providing essential technical and logistical support. Ng underscored the strategic significance of Ihavandhippolhu as an ideal location for bunkering services, given its position as a crucial thoroughfare for numerous large vessels.
Economic Minister H.E Mohamed Saeed reiterated the importance of the bunkering service in diversifying the Maldives’ economy, emphasizing its role in boosting revenue alongside the tourism sector. He expressed satisfaction in partnering with the world’s largest energy company for such a monumental project.
With more than 300 vessels passing through Ihavandhippolhu daily, the lack of service options in the area has been a longstanding challenge. Minister Saeed’s announcement during his recent visit to Haa Alif atoll underscores the government’s commitment to addressing this issue, with plans to commence bunkering services by the end of July.
STO Managing Director Shimad Ibrahim’s signing of the partnership agreement with Vitol signifies a significant milestone in the Maldives’ economic strategy. Under the partnership, Vitol will not only market the Maldives as a bunkering hub in the Indian Ocean but also contribute to the development of technical capabilities within the industry.
Ihavandhippolhu atoll’s designation as the Maldives Economic Gateway underscores its pivotal role in the government’s strategic plans. With proposed developments including an international port and strategic oil terminal, the atoll is poised to emerge as a key economic hub, further diversifying the nation’s economic landscape.
Source STO State Trading Organization