Western Provincial Government has decided not to renew the contract with Markworth Oil
By ULUTAH GINA
Solomon Star, Gizo
The Western Provincial Investment Corporation (WPIC), the commercial arm of the Western Provincial Government (WPG), is set to take back control of two fuel storage tanks in Noro, Western Province, as the current lease agreement with Markworth Oil Company Limited approaches its end.
This was confirmed by Western Province Premier Hon. Billy Veo during his Motion of Sine Die address on Friday, marking the close of the Western Provincial Assembly sitting held at the Fair Trade Company conference room in Gizo.
Premier Veo revealed that the two fuel tanks, which are owned by the WPG, have been leased to Markworth Oil Company Limited under an arrangement initially facilitated by the national Ministry of Mines and Energy before the assets were transferred to the provincial government.
Under the existing agreement, Markworth pays approximately SBD $1.3 million annually in rental fees to the province.
However, Premier Veo expressed concern that the returns are significantly below the assets’ potential value.
He stated that the Western Province could generate between SBD $5 million and $10 million per year if the tanks were managed directly or through its commercial arm.
“Western Province is not maximizing the full economic potential of these assets,” Veo said. “We cannot continue with the current arrangement when there is a clear opportunity to increase revenue for our people,” he added.
As a result, the provincial government has decided not to renew the contract with Markworth Oil Company Limited. Instead, WPIC will assume control and management of the fuel tanks.
The move is part of a broader strategy by the Western Provincial Government to strengthen its internally generated revenue and reduce reliance on national government support and external funding.
Noro, a key industrial hub in the Western Province, hosts major fisheries operations and serves as an important fuel distribution center for surrounding islands.
Control over fuel storage infrastructure is expected to play a significant role in supporting economic activity and ensuring fuel security in the region.
Premier Veo emphasized that the transition will be handled carefully to ensure continuity of fuel supply while maximizing long-term benefits for the province.
Further details on the transition timeline and operational arrangements under WPIC are expected to be announced in the coming months.
Ends////with photo
Two fuel tanks in Noro owned by Weysene Province.
