STO becomes sole supplier of fuel to Fenaka

Fenaka Corporation – which operates powerhouses in the atolls – will be stopping purchase of fuel it needs for its operations from private companies, assigning State Trading Organization (STO) the sole supplier of fuel to the corporation, starting coming May.

STO and Fenaka Corporation signed an agreement for supply, calibration and tank storage development in a function held this Sunday morning at STO.

The agreement was signed by Managing Director of STO, Ahmed Shaheer and Managing Director of Fenaka Corporation, Ahmed Shareef.

Speaking to press after signing the agreement, Fenaka’s MD Ahmed Shareef announced all the fuel needed for the corporation’s operations will be provided by STO, starting coming May.

“STO will supply 100 percent of Fenaka’s fuel starting May 1. A large quantity of fuel needed by Fenaka is supplied by STO, even now. So will be stopping purchase from private parties altogether,” said Shareef.

He said that in return, STO will caliberate and develop Fenaka’s fuel storage facilities.

“Fenaka’s powerhouses need approximately 5.5 million liters of fuel. The tanks aren’t calibrated. There’s no way to measure the quantity of fuel,” said Shareef.

Shareef said all storage tanks more than 50,000 in capacity will be calibrated by June, and the rest by September.

STO’s MD Ahmed Shaheer assured Fenaka Corporation of the organization’s dedication, noting also that as the State-mandated supplier of fuel into the country, the organization was looking to expand its distribution network.

Shaheer said that as part of the expansion effort, STO’s subsidiary – Fuel Supplies Maldives has acquired four fuel barges within the past two years as more technical staff are recruited and trained.