Malaysian authorities have detained two oil tankers suspected of carrying out an illegal crude oil transfer worth an estimated 129 million US dollars, as the country intensifies efforts to police its maritime waters.
The vessels were intercepted on January 29 north of the port of Penang after maritime officials received intelligence pointing to suspicious activity at sea. Authorities said the operation appeared to involve an unauthorized transfer of crude oil between the two ships.
In a statement released on January 31, the Malaysian Maritime Enforcement Agency said patrol units discovered both tankers anchored closely together, a positioning that raised immediate concerns during the inspection.
Penang Maritime Enforcement director Muhammad Suffi Mohd Ramli said officers boarded the vessels after the tip off and confirmed signs consistent with an illegal transfer.
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“An inspection found both vessels moored together, raising suspicion of an unauthorised transfer,” Muhammad Suffi said, adding that the crude oil onboard was valued at more than 512 million ringgit.
Both ships were seized, and their captains were handed over to investigators for further questioning. Authorities did not disclose the names of the vessels or their ports of origin, saying inquiries are still underway.
Officials said the combined crew of 53 included nationals from China, Myanmar, Iran, Pakistan, and India. Investigators are now working to determine the source of the crude oil and whether the operation was linked to wider sanctions evasion networks operating in regional shipping routes.
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Malaysia has come under growing international scrutiny in recent years over ship to ship oil transfers taking place in its waters, particularly near the busy Malacca Strait. Western governments and maritime analysts have warned that such transfers are sometimes used to disguise the origin of oil shipments subject to international sanctions.
In response to those concerns, Kuala Lumpur pledged in 2025 to step up maritime surveillance and enforcement, vowing to clamp down on illegal activities across its exclusive economic zone. The detention of the two tankers marks one of the most high value seizures reported so far under that renewed push.
