Local oil trading companies are objecting to a new deal struck between the government and a leading international fuel company for the exclusive use of storage facilities of State-owned Mediterranean Oil Bunkering Services.

Last October, the government signed a ‘strategic partnership agreement’ with World Fuel Services – an American company and a leader in fuel supplies – for the exclusive use of MOBC facilities in Marsa.

The deal was struck directly between the government and the foreign company without the issue of a public tender.

The Sunday Times of Malta is informed that various companies involved in the Association of Shipping Agents and the Chamber of Commerce have protested, insisting that a tender should have been issued.

However, in an exchange of correspondence seen by this newspaper, Energy Minister Konrad Mizzi said he could not issue a tender as “all local bunkering companies are involved in some kind of court action or are currently under investigation”.

We don’t know anything about this deal

The minister added the government would revisit the situation “when things settle down” with local operators. The Energy Ministry did not respond, however, when asked to explain how the foreign company was selected and the terms of the deal.

A spokesman for one of the leading local bunkering operators said: “We don’t know anything about this deal and this foreign company has now been given the opportunity to compete with us through the use of a public company…

“This is no excuse for not issuing a tender. Maybe other foreign companies were interested in the facility,” he said.

Established in 1982 to operate as a bunker supplier, MOBC operates various fuel storage tanks with a capacity of some 46,000 cubic metres.

In 2011, the facility was closed due to environmental issues and opened again in 2013 after the government invested in terminal upgrades.

Bunkering and storage are the main services offered by the company.