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Shadow Fleet Under Pressure as Malaysia Detains Tankers Carrying $130 Million in Oil
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Malaysian authorities have detained two oil tankers believed to be involved in covert ship-to-ship transfers used to disguise the origin of crude oil, seizing cargo worth hundreds of millions of dollars during an overnight maritime operation off the coast of Penang, (MMEA) reported on February 1.
The operation was carried out by MMEA after patrol units spotted the vessels anchored unusually close together about 24 nautical miles west of Mukah Head, a location frequently associated with clandestine oil transfers at sea.
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The agency said the positioning of the ships raised suspicions of “illegal transshipping oil.”
Officials did not identify the source of the crude oil on board. However, Malaysian waters are widely known as a transit zone for ship-to-ship transfers involving oil linked to Russia and Iran, with previous cases also involving Venezuelan cargoes. Such operations are commonly used to conceal a tanker’s cargo origin while bypassing international sanctions.
According to MMEA director-general Captain Muhammad Suffi Mohd Ramli, the interception followed a complaint received at approximately 1:00 a.m. local time reporting suspected “illegal” maritime activity.
Malaysia treated an illegal STS transfer like a crime scene — MMEA detained two tankers 24 nautical miles west of Muka Head, Penang, seizing over RM512 million in crude and impounding vessels valued at about RM718 million.
— The Maritime (@themaritimenet) February 1, 2026
The two captains were turned over to Penang… pic.twitter.com/lsQezML8qC
Authorities later disclosed that the two tankers were carrying oil valued at 512 million ringgit ($130 million), while the value of the seized cargo for the two tankers was 718 million ringgit ($182 million). They had a combined crew of 53 people, including nationals of China, Burma, Iran, Pakistan, and India.
Both ship captains were taken into custody and transferred to maritime investigators in Penang, while the vessels themselves were placed under investigation.
The tankers are being examined for unauthorized anchorage, an offense punishable by fines of around $30,000, as well as for illegal ship-to-ship oil transfers, which can result in penalties of up to $60,000 per vessel, Malaysian authorities said.
Officials also warned that shell companies behind such vessels often abandon tankers once legal proceedings begin, leaving oil-laden ships subject to seizure and eventual sale by the state.
The detentions come as Malaysia intensifies enforcement against unregulated maritime oil transfers, amid growing Western scrutiny of “shadow fleet” used to move sanctioned crude outside formal trading channels.
Earlier, the Ukrainian Defense Intelligence Agency publicly identified 66 vessels operated by Russia, Iran, and Venezuela that are allegedly involved in the transport of sanctioned oil and the theft of Ukrainian grain.
-72b63a4e0c8c475ad81fe3eed3f63729.jpeg "Photo of Cyril Barabaltchouk")
