GEORGE TOWN, Malaysia — Malaysia’s maritime enforcement agency, the Malaysian Maritime Enforcement Agency, detained two oil tankers and seized crude worth more than 512 million ringgit ($129.9 million) after intercepting a suspected illegal ship-to-ship (STS) transfer Thursday, Jan. 29, about 24 nautical miles west of Muka Head, Penang. The agency said the action followed a 1 a.m. report that the vessels were anchored together and appeared to be conducting a suspected unpermitted offshore transfer, Feb. 1, 2026.
Penang Maritime director Maritime Capt. Muhammad Suffi Mohd Ramli said officers found the tankers “in a coupled position” and suspected they were transferring crude at sea, according to Reuters. Authorities did not disclose where the crude originated, and the ships were taken in for further investigation.
Malaysia’s Penang operation
Inspectors detained the ships’ captains and placed 53 crew members under scrutiny while escorting the tankers for investigation, officials said. The crews included nationals from China, Myanmar, Iran, Pakistan and India, and the vessels themselves were valued at about RM718 million, according to a statement carried by Bernama.
Muhammad Suffi said the seized crude alone was worth more than RM512 million. Local media, including The Star, reported the interception began after the patrol boat received a complaint at about 1 a.m. and then conducted inspections at the location.
Officials said the captains were detained and handed over to maritime investigators in Penang. The agency said the ships were at anchor when intercepted, a pattern authorities say they are trying to stamp out.
Malaysia investigation and possible penalties
The case is being investigated under Section 491B(1)(l) of the Merchant Shipping Ordinance 1952 in connection with anchoring without permission from the Marine Department director-general, Bernama reported.
In a separate account, Channel News Asia reported the agency said the suspected offenses include anchoring without permission — which carries a penalty of RM100,000 — and conducting illegal STS transfers, which can draw a penalty of RM200,000 per vessel.
Ship-to-ship transfers can be lawful when properly declared and carried out under safety and environmental rules. Malaysian authorities have repeatedly warned, however, that unpermitted transfers at sea can be used to mask the origin of oil cargoes and complicate enforcement.
Malaysia’s longer fight against illicit STS activity
The detentions come as Malaysia tries to tighten oversight of offshore transfers near some of the world’s busiest shipping lanes. In late July 2025, regulators introduced stricter requirements for anchoring approvals, reiterated that vessels must keep AIS (Automatic Identification System) transmissions active and warned that authorities would act strictly against unauthorized operations, according to The Maritime Executive.
Industry reporting at the time said Malaysia also moved to close the Tompok Utara lay-up area near the eastern entrance of the Singapore Strait, a location long linked to offshore STS activity, and signaled tougher action against violators, Splash247 reported.
For Malaysia, the Penang seizure underscores how quickly suspected STS operations can surface outside designated anchorages — and how much money can be tied up in a single suspected transfer. Officials said investigators will determine whether the tankers breached permit conditions, maritime safety rule
