Expert calls for tighter surveillance of ship-to-ship oil transfers

Malaysia must bolster maritime surveillance and enforcement to detect potential illicit ship-to-ship oil transfers, according to an academic. Prof Nazery Khalid, a maritime industry and logistics expert, suggested authorities should intensify patrols and employ satellite technology and intelligence-sharing to identify suspicious vessel movements.

NST reported on a forum titled "Strengthening Malaysia's Downstream Petroleum Value Chain and Identifying Gaps and Enabling Factors Within Malaysia Regulatory Landscape," organized by Maritime Network and Universiti Malaysia Terengganu (UMT). During the event, Prof Nazery stated that Ship-to-Ship (STS) transfers are legitimate and highly regulated maritime operations, but must abide by national rules and international safety and environmental standards.

Satellite monitoring could aid authorities in spotting vessels lingering in close proximity to one another for extended periods, while specialized service providers could aid enforcement agencies in detecting suspicious activities, he added. Prof Nazery emphasized that ship-to-ship transfers must be conducted in accordance with national rules, in designated areas, and must meet high safety and environmental standards.

Orkim CEO Captain Cheah Sin Bi pointed out that vessels with dubious histories and operating practices could serve as red flags for potentially illicit transfers. Cheah cited vessels that frequently changed names, altered registrations between countries, and switched off equipment during transfers. He advocated for proper know-your-customer checks, scrutiny of contractual arrangements, and consultation with Protection and Indemnity clubs when operators are uncertain about a transaction.

Cheah also advised operators to question unusually lucrative offers that deviated significantly from prevailing market rates.