Malaysia seizes US$129.9 million in crude from tankers suspected of illegally transferring oil
The vessels were found anchored and coupled at sea. Officials have not disclosed the origin of the oil.
Two tankers were detained last week over suspected illegal ship-to-ship oil transfers off Penang, with more than RM512 million (US$129.9 million) worth of crude oil seized, the Malaysian Maritime Enforcement Agency said on Jan 31, 2026. (Photo: Malaysian Maritime Enforcement Agency)
SINGAPORE: Two tankers suspected of illegal ship-to-ship oil transfers were detained and more than RM512 million (US$129.9 million) worth of crude oil seized 24 nautical miles west of Muka Head, Penang last week, the Malaysian Maritime Enforcement Agency said on Saturday (Jan 31).
The agency did not specify the origin of the oil being transferred.
The waters off Malaysia are known as a regular site for illegal ship-to-ship transfers, where oil is shifted between tankers at sea to obscure its origin.
Malaysian authorities said in July last year they would more tightly enforce rules around the practice.
The seized tankers, worth RM718 million, were carrying 53 Chinese, Burmese, Iranian, Pakistani and Indian crew members.
The two captains of the ships were arrested and handed over to Penang state maritime investigation officials, the agency said.
Maritime Captain Muhammad Suffi Mohd Ramli said the tankers at anchor were inspected after a patrol boat received a complaint at about 1am local time on Thursday. The ships were found in a coupled position and suspected of carrying out transfer activities.
The captain added that the tankers are being investigated for anchoring without permission, which carries a penalty of RM100,000, and carrying out illegal ship-to-ship transfer activities, which carries a penalty of RM200,000 per vessel.
