The State Trading Organization (STO)’s Managing Director Shimad Ibrahim has stated that the newly launched international bunkering service will cater to luxury vessels as well as large high-profit vessels.
Speaking at a ceremony held at Haa Alif Hoarafushi today to kick off the service, Shimad said the STO decided to expand its existing oil business by entering international fuel bunkering services. The best offer for the invitation was received from Vitol, one of the best companies in the field.
The bunkering service will initially offer diesel and Very Low Sulfur Fuel Oil (VLSFO) for large vessels, Shimad said.
“Together with Vitol and STO, we want to focus on and service the luxury vessels that are passing through the Maldivian region and the niche market, meaning we will target vessels that offer the best profit margi,” he said.
Shimad said the bunkering service will start with zero working capital.
“This means that Vitol will provide us with cargo, and will help us sell the cargo,” Shimad said.
Revenues from the sales will be used to pay Vitol.
Noting that off-shore bunkering is not a permanent solution, Shimad said a permanent solution would be found by dredging land and establishing fuel farms and a port.
