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THE Malaysian Maritime Enforcement Agency (MMEA) has foiled an attempted illegal transfer of approximately 700,000 litres of diesel in a major bust valued at RM2.33 billion, after detaining two tanker vessels and 22 crew members off Bagan Ajam in Penang waters.
The detained crew comprise Malaysian, Myanmar, Russian, Filipino and Indonesian nationals who were found aboard the two vessels during the operation conducted late last night.
Penang Maritime director Captain Muhammad Suffi Mohd Ramli said the operation was launched following intelligence received at about 10.45am regarding suspicious movements involving two anchored vessels in the area.
He said a joint operation was immediately activated with the Penang branch of the Ministry of Domestic Trade and Cost of Living (KPDN), with a Maritime patrol vessel deployed to the scene for inspection.
“Inspection found that both vessels were side by side and suspected to be carrying out ship-to-ship oil transfer activities without permission,” he said.
He added that further inspection found the activity involved Euro 5 diesel, with an estimated transfer of 700,000 litres, while the total quantity of diesel on board the vessels was estimated at 800,000 litres.
“The value includes both tanker vessels as well as the Euro 5 diesel cargo that was attempted to be smuggled, estimated at RM5.43 million,” he said, adding that the overall seizure, including the vessels, was valued at RM2.33 billion.
He described the case as one of the highest-profile maritime seizures recorded this year.
The case is being investigated under Section 491B(1)(k) of the Merchant Shipping Ordinance 1952 for conducting ship-to-ship transfers without the approval of the Director-General of the Marine Department Malaysia, an offence which carries a fine of up to RM200,000 for each vessel.
Investigations are also being carried out under the Customs Act 1967 for failure to produce documentation related to the oil transfer and cargo declaration.
“All detained crew members and vessels were subsequently brought to shore and handed over to the investigating officer of the Penang Maritime State Office for further action,” he said.
MMEA said it will continue to intensify patrols and surveillance in Malaysian waters to curb illegal fuel transfer activities at sea. - April 12, 2026