Malaysia Urged to Enhance Maritime Surveillance Amid Allegations of Sanctioned Oil Transfers
Malaysia must strengthen its maritime surveillance and enforcement capabilities to detect suspicious ship-to-ship (STS) oil transfers amid allegations that its waters are being used to facilitate the movement of sanctioned Iranian oil, according to an academic. Nazery Khalid, adjunct professor at Universiti Malaysia Terengganu (UMT) and Taylor’s University, emphasized the need for authorities to step up patrols and utilize satellite technology and intelligence-sharing to identify suspicious vessel movements.
Khalid noted that STS transfers are legitimate and highly regulated maritime operations, but must comply with national rules and international safety and environmental standards. He suggested that satellite monitoring could help authorities identify vessels remaining close to one another for extended periods, while specialized service providers could assist enforcement agencies in detecting suspicious activities.
“We need to ensure that ship-to-ship transfer is done in accordance with national rules, in designated areas, and ensuring that it adheres to high safety and environmental standards,” Khalid said. His comments were made at a forum titled “Strengthening Malaysia’s Downstream Petroleum Value Chain and Identifying Gaps and Enabling Factors Within Malaysia Regulatory Landscape.”
Warning Signs of Illicit Transfers
Another panellist, Orkim chief executive officer Captain Cheah Sin Bi, highlighted the importance of identifying warning signs of potentially illicit transfers. He noted that vessels with suspicious histories and operating practices could provide red flags for authorities.
Captain Cheah cited examples of vessels that had changed names repeatedly, switched registrations between countries, and switched off equipment during transfers. “The name has changed like 15 times. The registry has changed about five different countries, and then the equipment has been switched off during the transfer, so you think that something is not right,” he said.
Cheah emphasized the importance of shipping operators conducting proper know-your-customer checks, scrutinizing contractual arrangements, and consulting their Protection and Indemnity clubs when uncertain about a transaction. He also urged operators to question unusually lucrative offers that deviated from prevailing market rates.
The forum was organized by Maritime Network, together with UMT. The event aimed to strengthen Malaysia’s downstream petroleum value chain and identify gaps and enabling factors within the country’s regulatory landscape.
Original Article: Expert calls for tighter surveillance of ship-to-ship oil transfers — Com