Malaysia Releases Two Tankers Linked to Suspected $130m Illegal Crude Transfer

Malaysia has released two oil tankers that were detained off Penang island last week over suspected illegal ship-to-ship transfers involving crude oil worth nearly US$130 million.

Authorities said investigations into the case are still ongoing.

The Malaysian Maritime Enforcement Agency (MMEA) confirmed on Tuesday that the vessels, named Nora and Rcelebra, were freed along with their cargo after a bond of 300,000 ringgit (around US$76,400) was posted.

Officials said the ships remain under investigation for allegedly conducting ship-to-ship transfers without permission.

The tankers were detained on 29 January following a complaint about their activities in waters off Penang.

During the operation, authorities seized the vessels and arrested 53 crew members while looking into suspected unauthorised crude oil transfers at sea.

MMEA officials said the two tankers were managed by agents based in Penang who were appointed by the ships’ owners.

The agency did not reveal the origin of the crude oil or provide further details about the cargo.

According to the office of the MMEA’s Penang director, the case is currently awaiting further instructions from the Deputy Public Prosecutor before any court action is taken.

Waters off Malaysia are known to be a frequent location for illegal ship-to-ship transfers, a practice used to hide the origin of oil cargoes or avoid sanctions.

Malaysian authorities said last year that they would increase efforts to crack down on such activities.

Public records and ship-tracking data showed that the IMO numbers of the Nora and the Rcelebra match those of vessels previously sanctioned by Western authorities.

The Nora, which earlier operated under the name Longbow Lake, was added to the US Treasury’s sanctions list in 2020 due to its links to Iran’s National Iranian Oil Company.

The Rcelebra has been under European Union sanctions since last year for suspected involvement in transporting crude oil and petroleum products linked to Russia, Iran and Venezuela.

After being released, the Nora was last tracked sailing towards Sri Lanka. The Rcelebra was seen heading towards the Eastern Outside Port Limit area near Singapore, an area known for activity by so-called dark fleet tankers.

References: Reuters, NST