MOBC tanks to service Miami-based global fuel supplier

A leading global fuel supplier has entered into a strategic partnership agreement for the use of fuel storage tanks belonging to the state-owned Mediterranean Offshore Bunkering Co Ltd.

A spokesperson for the Energy Ministry confirmed that the agreement was signed with World Fuel Services.

Activities at MOBC were halted in 2011 by the Malta Environment and Planning Authority, when a stop order was issued on certain activities carried out by MOBC.  The stop order was issued in view of potential environemnt risks and nuiscances caused by odours generated from the loading and unloading of fuel and heating of tanks containing fuels.

The enforcement notice was lifted in 2013 after the government carried out the necessary investment.

“The partnership agreement will solidify Malta’s aim of becoming a fuel services hub in the Mediterranean region. WFS has committed to maximise the use of MOBC tanks and it will carry out marketing for its fuel products and services, namely gas oil and fuel, in the region. MOBC will thereby strenghten its finances in the process,” the spokesman told MaltaToday.

Operating in over 200 countries across the globe, World Fuel Services, a fuel logistics company, engages in the marketing, sale, and distribution of aviation, marine, and land fuel products and related services worldwide.

The government has also set up two new companies – Petromal Company Ltd and Enemed Company Ltd – to take full control of Enemalta’s petroleum division. The two companies have already taken an €83 million bank loan.

The petroleum division was left out of the negotiations with Chinese state entity Shanghai Electric Power, that has acquired a 33% stake in Enemalta plc for €320 million.

Although it remains owned by the government, the petroleum division is no longer the responsibility of Enemalta. The original plan for the lucrative division was its privatisation. In 2008, Dutch group BB Energy BV was named the first ranking bidder for the commercialisation of the operation, maintenance and development of Enemalta’s Petroleum Division and the business activities undertaken by MOBC.

Just before the summer recess, Minister Konrad Mizzi told Parliament that the petroleum plant in Birzebbuga would eventually be closed down and the tanks relocated. He said that a new entity would take over this plant, which was making a profit.