Malaysia: Two tankers detained over illegal ship-to-ship transfer of diesel off Penang

The Penang Malaysian Maritime Enforcement Agency (MMEA) has detained two tankers for allegedly conducting an illegal ship-to-ship transfer of about 700,000 litres of diesel fuel on Saturday (11 April).

Penang MMEA director Suffi Ramli said the operation followed intelligence received at 10.45am on suspicious movements involving the two ships anchored in the Bagan Ajam waters before a patrol boat was sent to the location. 

“An 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 that the activity involved an estimated 700,000 liters transfer of Euro 5 diesel oil, while the total quantity of diesel on board was estimated to reach 800,000 liters.

According to him, the operation also led to the detention of 22 crew comprising Malaysian, Myanmar, Russian, Filipinos and Indonesian nationals who were on board both vessels.

The overall value of the seizure was estimated to be MYR 2.33 billion (USD 586 million), making this case one of the country’s highest-profile maritime seizures this year. 

The value includes the two tankers that were confiscated, worth MYR 2.32 billion and MYR 2.89 million respectively, and the Euro 5 diesel cargo that was attempted to be smuggled was estimated to be worth MYR 5.43 million.

The case is being investigated under Section 491B (1)(k) of the Merchant Shipping Ordinance 1952 for carrying out ship-to-ship transfers without the permission of the Director-General of the Marine Department of Malaysia. 

The offence carries a fine of up to MYR 200,000 for each vessel. 

In addition, investigations are also carried out under the Customs Act 1967 for failing to produce documents related to oil transfer and cargo declaration.

All the detained crews and vessels were later brought to shore before being handed over to Penang MMEA investigating officers for further action.

Photo credit: Malaysian Maritime Enforcement Agency
Published: 13 April, 2026