Malaysia detains two tankers suspected of illegally transferring diesel

Malaysia's Maritime Enforcement Agency (MMEA) said it has detained two tankers for allegedly conducting an illegal ship-to-ship transfer of about 700,000 litres of diesel off the island of Penang over the weekend.

Malaysia has been cracking down on fuel smuggling amid mounting shortages and supply disruptions throughout the region caused by the war in the Middle East.

Penang MMEA director Muhammad Suffi Mohd Ramli said authorities carried out checks following an intelligence tip about the ships, which were anchored in the waters off Bagan Ajam on Saturday.

"The inspection found that both ships were in a coupled state and were suspected of carrying out ship-to-ship oil transfer activities without permission," Muhammad Suffi said in a statement on Sunday.

The alleged transfer involved about 700,000 litres of Euro 5 diesel, while the total amount seized was estimated at around 800,000 litres, with a value of about 5.43 million ringgit ($1.37 million), he said.

Authorities also arrested 22 crew members, comprising Malaysian, Myanmar, Russian, Philippine and Indonesian nationals.

The MMEA did not specify the origin of the tankers, the diesel, or the fuel's destination.

The waters off Malaysia are known to be a regular site for illegal ship-to-ship transfers, where oil is shifted between tankers at sea to obscure its origin. Malaysian authorities said in July last year that they would enforce related rules with more rigour.

Penang MMEA detained two tankers in February for a similar ship-to-ship transfer of crude oil, though the vessels were later released on a bond pending further investigations.