State Trading Organization (STO) will begin bunkering services — the supply of fuel to marine vessels — by the middle of the year Managing Director, and Chief Executive Officer, Shimad Ibrahim has confirmed. Bunkering services are seen, globally, as a highly profitable business.

Shimad Ibrahim, during an interview with local media, highlighted that one of STO’s main businesses was the supply of fuel, adding that the company was now engaged in the supply and sales of diesel, petrol and aviation fuel.

Bunkering was one of the biggest investment opportunities for STO, Shimad said, as the company was uniquely suited to expanding its fuel supply portfolio while taking advantage of the nation’s strategic location along shipping routes.

Bunkering services will provide, in addition to the three types of fuels [I’ve] mentioned [diesel, petrol and aviation fuel], fuel oil and other oils. So we are currently in a planning process to work on the legal framework and do the technical feasibility to establish a mechanism to provide bunkering services. It is our most priority project. I believe we will be able to do the practical work in the middle of this year.

Shimad Ibrahim, Managing Director and Chief Executive Officer at STO, explaining to local media the company’s move to establish bunkering services in the Maldives.

STO, similar to other state-owned enterprises (SOEs), is working to expand revenue streams by diversifying its businesses — viewing to reduce reliance on state funds and increase revenue to the state.