Malaysia frees two “dark fleet” tankers linked to illegal oil transfers

Two tankers detained off the coast of Penang for suspected illegal crude oil transfers worth US$129 million (S$163 million) have been released on bond by Malaysian authorities, with one vessel later sighted sailing past Singapore on February 3.

The vessels, Nora and Rcelebra, believed to be part of the so-called “dark fleet,” were intercepted north of Penang port on January 29 on suspicion of engaging in unauthorised ship-to-ship (STS) transfers. The dark fleet is a network of tankers used to transport sanctioned oil while evading detection through opaque ownership structures, flag changes, and disabled tracking systems, The Straits Times reports.

“Both vessels were released on bonds of RM300,000 (S$97,000) on January 31. The case is pending trial,” said Captain Muhammad Suffi Mohd Ramli, Penang maritime director at the Malaysian Maritime Enforcement Agency (MMEA), in comments to The Straits Times on February 3. The bond amount corresponds to the statutory penalty for offences involving unauthorised STS transfers, which are considered illegal when conducted without authorisation. Such transfers are often carried out in open seas to obscure the origin of cargo, allowing operators to evade sanctions, taxes, or enforcement checks.

The Rcelebra, 333 metres long, has been under European Union sanctions since February 2025 for its involvement in exporting sanctioned Russian crude, as well as Iranian and Venezuelan petroleum products. The vessel currently flies the Cameroonian flag, having previously sailed under Hong Kong, Greek, Maltese, and Vietnamese flags. Nora sails under the flag of Guyana.

While Malaysia has become a known hub for illegal STS transfers in recent years, such activity is more commonly reported off the east coast of Johor, making the Penang case unusual. “Such cases in Penang are very rare, with the last recorded incident occurring in 2014,” Capt Muhammad Suffi said, adding that MMEA Penang will enhance monitoring of its waters with new, larger enforcement vessels scheduled for delivery in April.

Meanwhile, Charlie Brown, a senior adviser at United Against Nuclear Iran (UANI), a US-based advocacy group monitoring sanctions evasion, criticised the release of the tankers on bond, describing it as a “slap on the wrist.” “It’s an easy US$75,000 for Malaysia and a minor inconvenience for the cargo owner,” Brown, who is based in Singapore, said.

According to UANI, instances of illegal STS activity involving sanctioned Iranian oil in Malaysian waters rose from 280 in 2023 to 679 in 2025, driven largely by demand from China. While China has officially reported no imports of Iranian crude since 2022, its customs data has repeatedly shown imports of Malaysia-sourced oil exceeding Malaysia’s annual production, a discrepancy analysts say points to Iranian oil being relabelled as Malaysian.

By Vafa Guliyeva