Government Exploring Lagoons for Strategic Oil Storage Facility

Minister of Finance and Public Enterprises Moosa Zameer has revealed that two lagoons in the Greater Malé Region are being explored as potential sites for establishing long-term oil reserves in the Maldives.

Speaking at a press briefing held by a Special Cabinet Committee on Middle East tensions, the Minister said the Ministry of Finance is working in collaboration with the Ministry of Economic Development and the State Trading Organization to develop a national oil storage facility. He noted that global developments, particularly in the Middle East, have led to fluctuations in oil prices, prompting the Government to prepare for possible supply disruptions.

Minister Zameer said the project will be implemented in three phases, with initial efforts focused on identifying suitable locations. Surveys of the two lagoons in the Malé region are expected to begin next week following preliminary assessments. A final proposal—covering design, feasibility, and financing—will be prepared and submitted to the President for approval.

He stated that the reserve is intended to ensure the Maldives can maintain adequate fuel supplies during periods of volatility, with plans to determine appropriate stock levels once the project design is finalised. He added that after meeting national requirements, there may also be scope to lease additional storage capacity.

The Government aims to establish reserves capable of storing fuel for up to one year, with Phase One targeted for completion within two years. At present, fuel is stored at the Funadhoo fuel terminal, which supplies diesel and petrol to public utilities, resorts, and private operators, while aviation fuel is distributed to Velana International Airport and other airports across the country.