Malaysia seizes crude oil worth $129.9 million from tankers suspected of illegal transfers
- In Reports
- 07:22 PM, Feb 01, 2026
- Myind Staff
Malaysia has seized crude oil worth 512 million ringgit, or about $129.9 million, after detaining two tankers suspected of carrying out illegal ship-to-ship oil transfer activities near the country’s waters. The Malaysian Maritime Enforcement Agency confirmed the action on Saturday, saying the operation took place about 24 nautical miles west of Muka Head, Penang.
According to the agency, the two tankers were suspected of illegally transferring crude oil at sea, a practice often used to hide the real origin of the oil. While confirming the seizure, the agency did not specify where the crude oil originally came from. The oil was found on board the vessels during an inspection carried out by maritime authorities.
The Malaysian Maritime Enforcement Agency said that the waters off Malaysia are known to be a regular location for illegal ship-to-ship transfers. In such operations, oil is moved from one tanker to another while at sea, making it difficult to trace the source of the cargo. Malaysian authorities had earlier acknowledged the issue and, in July last year, said they would enforce stricter rules to control and prevent such activities.
In addition to the seized crude oil, the two tankers themselves were valued at 718 million ringgit. The vessels were carrying a total of 53 crew members of different nationalities, including Chinese, Burmese, Iranian, Pakistani, and Indian nationals. The agency confirmed that the two captains of the ships were arrested following the inspection. They were later handed over to Penang state maritime investigation officials for further action.
Providing details of the operation, Maritime Captain Muhammad Suffi Mohd Ramli explained how the authorities became aware of the suspicious activity. He said, “The tankers at anchor were inspected after a patrol boat received a complaint at about 1 a.m. local time on Thursday.” During the inspection, officials found that the ships were positioned close together. He added that “the ships were found in a coupled position and suspected of carrying out transfer activities.”
Captain Muhammad Suffi Mohd Ramli further stated that investigations are ongoing against the tankers for multiple violations. He said the vessels are being investigated for anchoring without permission, an offence that carries a penalty of 100,000 ringgit. In addition, they are also being investigated for carrying out illegal ship-to-ship transfer activities, which carries a higher penalty of 200,000 ringgit per vessel.
The Malaysian Maritime Enforcement Agency reiterated its commitment to monitoring and enforcing maritime laws in national waters. The seizure highlights the authorities’ continued efforts to curb illegal oil transfer activities and ensure compliance with maritime regulations, particularly in areas known for such practices.

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