Vitol Group, has been assigned to set up a bunkering facility in Ihavandhipolhu.

Vitol Group is the world's third-largest provider of bunkering services, selling 12 million tonnes of oil annually as bunker fuel, making Vitol the largest physical bunker supplier in the Middle East and one of Singapore's largest bio-marine fuel suppliers.

STO and Vitol signed a term sheet to set up a bunkering facility at Ihavandipolhu at a ceremony held at Hotel Jen. The agreement was signed on behalf of STO by Managing Director Simad Ibrahim.

Economic Minister Mohamed Saeed presided over the ceremony.

Speaking at the signing ceremony, Jay Ng said Ihavandhipolhu was a good destination for bunkering services and that many boats pass through the area. He expressed hope that the Maldives would become an international bunkering hub in the near future.

Minister Saeed said that a company such as Vitol investing in Maldives would boost the economy, adding that Maldives is open to investors.

STO said that it has signed a term sheet with Vitol today, prior to signing an agreement to complete the requirements to be completed in order to start the bunkering business in Ihavandhipolhu.

According to the agreement, Vitol's main responsibility is to supply the fuel needed for the bunkering service to the barge, to promote the Maldives as an international bunkering hub through Vitol's large network, and the STO will become a physical bunker supplier at the Maldives Economic Gateway.

STO said the bunkering facility at Ihavandipolhu will provide heavy fuel oil and marine gas oil for boats and if there is demand, it will also be able to sell LNG and bio-fuel in the near future.