The government-backed bunkering service has brought in USD 8.04 million since its launch, according to Shimad Ibrahim, Chief Executive Officer and Managing Director of the State Trading Organization (STO). Ibrahim disclosed the figure during the company's 2024 annual general meeting.
The service, introduced in September 2024, began operations in Ihavandhippolhu, where the government committed an investment of between USD 15 million and USD 20 million to establish its foothold. While this was the intended hub, Ibrahim noted that the most significant business activity is currently concentrated in the Malé region.
Although initial results have been encouraging, Ibrahim highlighted the need for further enhancements to maintain competitiveness. He pointed to Sri Lanka as a key benchmark, highlighting the ongoing discussions with stakeholders to address necessary improvements. "There are aspects of bunkering that require further refinement. To remain competitive with neighbouring countries such as Colombo [Sri Lanka], significant improvements must be made. Discussions on these matters are currently underway," Ibrahim stated.
As part of its expansion efforts, STO has delivered bunkering services to one of the world's largest shipping lines, supplying 1,200 tonnes of water—an achievement Ibrahim described as a strong indicator of international confidence in the service. "This reflects the confidence that international shipping liners have in our bunkering service and affirms its effective delivery," he affirmed.
The bunkering operation is carried out in partnership with Vitol, an international energy and commodities firm. To facilitate services, two vessels are deployed, each capable of carrying approximately 4,000 tonnes of oil, with refuelling conducted offshore while ships remain at sea.
Looking ahead, the government anticipates that the expansion of bunkering services will contribute an additional USD 400 million to the nation's Gross Domestic Product (GDP). Officials also project the development of a new industry valued at USD 389.61 million as a direct result of the initiative.