Viva Energy Australia has announced a collaboration to secure the future of the Melville Island Fuel Facility near Darwin.
The 30-million-litre fuel site is seen as a vital asset for the region and Viva Energy said a collaboration with Tiwi Port and Marine and the Department of Defence will ensure ongoing operations and enhance Defence’s fuel capability and resilience.
Through this partnership, Tiwi Port and Marine will also take over the port operations after the previous business was placed in administration and the facility was at risk of closing, which would have had a significant impact on the community.
The deal will see Viva Energy enter a long-term exclusive licence to run the fuel facility, providing certainty for this crucial port business activity, supported by a storage agreement with Defence.
While this commercial deal will benefit all parties, self-determination has been a core consideration in its development, said Viva Energy.
The partnership allows Tiwi Port and Marine to acquire the overall port facility, with a portion of future storage revenue going directly to the Tiwi-led organisation once a certain level of storage is achieved.
Traditional owner and Tiwi Port and Marine Chair, Gibson Farmer Illortaminni, said: “I’m very proud of this new partnership with Viva Energy and Defence. Working together, the Tiwi people are shaping the island now and into the future, creating jobs and opportunities for our kids and future generations.”
Viva Energy CEO Scott Wyatt said the deal aligns closely with Viva Energy’s long-standing commitment to supporting reconciliation and positive outcomes for First Nation’s people and its obligations to Defence, one of the company’s most strategic customers.
“Through this long-term partnership, Viva Energy will utilise our core business skills and expertise in fuel supply chain operations to run the Melville Island Fuel Facility, providing long-term certainty for the business and Defence,” Wyatt said.
“Importantly, we will work with the Tiwi communities to transfer skills and knowledge through training and employment opportunities. We will also link into our other commercial and community partners to unlock additional business opportunities and enhance access to community services.”