STO, in collaboration with the renowned energy trader Vitol Group, has inked a pivotal term sheet agreement, marking a significant leap forward in the Maldives Economic Gateway Project. This groundbreaking agreement sets the stage for the establishment of an international bunkering facility (Ihavandhippolhu International Bunkering) in Ihavandhippolhu Atoll, the northernmost geographical atoll of the Maldives.
The agreement, signed in the presence of Minister of Economic Development and Trade Mohamed Saeed, witnessed Shimad Ibrahim, the Managing Director of STO, and Jay Ng, a Director at the Vitol Group, sealing the deal on Wednesday. With Vitol Group, a multinational energy and commodity trading giant with Swiss roots and Dutch ownership, having a longstanding trade relationship with STO, this collaboration holds immense promise.
STO envisions the Ihavandhippolhu International Bunkering Hub Project as a transformative force in global trade, potentially paralleling the monumental success of the Maldives’ tourism industry. As part of this strategic partnership, Vitol will leverage its expansive global network to position the Maldives as a pivotal bunkering hub in the Indian Ocean, while also contributing to the technical advancement of the industry.
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The term sheet serves as a preliminary agreement, delineating the formalities necessary to kickstart the international bunkering business at the Maldives Economic Gateway. Vitol, a global energy leader with a footprint spanning 40 locations worldwide, annually trading 12 million metric tonnes of crude oil as bunker fuel, is poised to play a pivotal role.
Under the terms of the agreement, Vitol will shoulder the responsibility of ensuring a steady supply of fuel essential for bunkering services, alongside actively promoting the Maldives as an international bunkering hub through its extensive global network. The agreement further outlines the availability of both heavy fuel oil and marine gas oil required by vessels, with provisions for the potential introduction of LNG and biofuel in the near future.
STO, meanwhile, is slated to serve as the physical bunker supplier at the Maldives Economic Gateway, in accordance with the terms of the agreement. The government’s strategic plans to diversify the economy have pinpointed Ihavandhippolhu Atoll as a pivotal area. Named the Maldives Economic Gateway, this region is earmarked to host an international port, a strategic oil terminal, and various other maritime-related activities, signifying a bold step towards economic expansion and resilience.
