State Trading Organization (STO) has signed a term sheet agreement with Vitol, one of the world’s largest companies in the energy industry, to set up an international bunkering hub in the north of Maldives.
STO CEO and Managing Director Shimad Ibrahim signed the agreement on behalf of the company at a ceremony graced by Economic Minister Mohamed Saeed. Jay Ng, a director of Vitol of the Netherlands, signed on behalf of the company.
"Under this partnership, Vitol will help market Maldives as a bunkering hub in the Indian Ocean and enhance our technical capabilities in the industry," STO said.
"This term sheet is signed prior to signing an agreement to commence international bunkering at the Maldives Economic Gateway."
STO did not disclose any further information.
Who is Vitol?
Founded 57 years ago in 1966 in Rotterdam, the Netherlands, the company is now based in Switzerland. The company has offices in more than 40 countries and reported a revenue of USD 505 billion by the end of 2022.
It is the world's largest private energy company. The company does not publish its accounts and is not on Forbes' list of the wealthiest companies. If the company is included, it will be in the top five of the list.
ay Ng, a director of Vitol of the Netherlands, signed on behalf of the company. -- Photo: STO
The company sells 350 million tonnes of oil annually and owns more than 250 supertankers and other vessels to transport the oil.
The company sells 7.6 million barrels of oil per day, more than Japan, the world's fourth largest oil consumer. The company has 16 million cubic meters of oil storage capacity worldwide.
Project awarded to Qatari company by former government
The northernmost atoll of Ihavandhippolhu lies on the main shipping lane for financial transactions between east and west in the Indian Ocean. More than 300 large ships cross the area daily, according to Maritime Movements.
On August 10, 2023, STO signed an MoU with Qatar's UrbaCon Trading and Contracting to start refueling services for large vessels. It is unclear what will happen to the MoU due to the agreement signed with Vitol today.
The previous government planned to carry out the bunkering project as part of a port city development project in Ihavandhippolhu, which is the northernmost natural atoll in the Maldives with the islands of Thuraakunu, Uligan, Hoarafushi, Ihavandhoo and Molhadhoo.
The MoU signed with UrbaCon includes conducting feasibility studies for beginning international bunkering services and building a national strategic petroleum reserve in the port city in addition to implementing the project
Qatar's UrbaCon Trading and Contracting is one of the Middle East's leading construction companies. The company undertook the project to design and build one of the most luxurious resorts in Maldives, the Waldorf Astoria Ithaafushi Resort.
