Penang MMEA director Muhammad Suffi Mohd Ramli said authorities carried out checks following an intelligence tip about the ships, which were anchored in the waters off Bagan Ajam on Saturday.
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“The inspection found that both ships were in a coupled state and were suspected of carrying out ship-to-ship oil transfer activities without permission,” Muhammad Suffi said in a statement on Sunday.
The alleged transfer involved about 700,000 litres of Euro 5 diesel, while the total amount seized was estimated at around 800,000 litres, with a value of about 5.43 million ringgit (US$1.37 million), he said.

Authorities also arrested 22 crew members, comprising citizens from Malaysia, Myanmar, Russia, the Philippines and Indonesia.

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