Supply of Heavy Fuel Oil for CEB: What the STC Agreement with Sahara Energy Resource Limited Reveals

On the evening of April 14, 2026, Commerce Minister Michael Sik Yuen presented the full agreement between the State Trading Corporation (STC) and Sahara Energy Resource Limited (based in the Isle of Man) to the National Assembly. This previously confidential document, repeatedly requested by the opposition, outlines the terms for the supply of heavy fuel oil. The main customer of the STC for this product is the Central Electricity Board (CEB).

The STC has awarded Sahara Energy Resource Limited (headquartered in Douglas, Isle of Man) the contract to deliver three main grades of fuel oil to Port-Louis (Delivery At Place – DAP), with the following prices:

• Fuel Oil 180 CST Catalytic Cracked (HSFO 180 CC): 40,000 metric tons (± 25% at STC's option), premium of 70.81 USD per ton;
• Fuel Oil 180 CST Straight-Run (HSFO 180 SR): 165,000 metric tons (± 25%), premium of 78.04 USD per ton;
• Fuel Oil 380 CST Straight-Run (HSFO 380 SR): 135,000 metric tons (± 25%), premium of 68.74 USD per ton.

An optional product is also included: Very Low Sulphur Fuel Oil 0.5% sulphur (VLSFO 180 CST) for 50,000 metric tons at a price of 58.26 USD per ton, with the STC indicating that "Sahara Energy Resource Limited is to consider offering a discount on the above quoted premium on a consignment-wise basis."

Sahara Energy Resource Limited was required to provide, before March 17, 2025, a performance guarantee of USD 5 million issued by an approved Mauritian bank. This guarantee was to remain valid for two months after the end of the contract.

The contract also prohibits any transactions involving countries or entities under international sanctions (UN, EU, UK, USA). The formal agreement was signed on March 19, 2025, by representatives of the STC and Sahara. An extension until May 31, 2026, was notified by the STC on February 9, 2026, with reduced indicative quantities but under the same pricing conditions.