Malaysia seizes $129.9 million in crude oil from suspected illegal ship-to-ship transfer

SUNDAY, FEBRUARY 01, 2026

Two tankers suspected of illegal ship-to-ship oil transfers were detained off the coast of Penang, Malaysia, last week, with more than 512 million ringgit ($129.9 million) worth of crude oil seized 24 nautical miles west of Muka Head, the Malaysian Maritime Enforcement Agency reported on Saturday.

The origin of the oil being transferred was not disclosed.

The Malaysian waters are a known hotspot for illegal ship-to-ship oil transfers, where oil is moved between tankers at sea to conceal its source. Authorities announced tighter regulations on such activities in July last year.

The two seized tankers, valued at 718 million ringgit, were carrying 53 crew members from China, Myanmar, Iran, Pakistan, and India. Both ship captains were arrested and handed over to maritime investigators in Penang.

Maritime Captain Muhammad Suffi Mohd Ramli explained that the vessels were inspected after a patrol boat received a tip-off around 1 a.m. on Thursday. The ships were found to be coupled and suspected of engaging in the illegal transfer.

The tankers are being investigated for anchoring without permission, which carries a fine of 100,000 ringgit, and for illegal ship-to-ship transfers, with a fine of 200,000 ringgit per vessel.

Reuters