KUALA LUMPUR: Singapore Exchange (SGX) Mainboard-listed Oiltek International Ltd and Brunei-based BioSeaga Industries Sdn Bhd have entered into a Heads of Agreement to jointly develop a US$350mil (RM1.65bil) large-scale Sustainable Aviation Fuel (SAF) biorefinery with a planned capacity of 300 metric tons per day in Sabah.
Oiltek Sdn Bhd (Oiltek Malaysia), a wholly-owned subsidiary of Oiltek, has been appointed as the exclusive engineering, procurement, construction and commissioning (EPCC) partner for the plant’s pre-treatment facilities, SAF production plant, tank farm and logistic bulking infrastructure, and partial blending facilities.
Oiltek Malaysia shall also have the right of first refusal to participate in any equity investment, joint venture, or ownership opportunity related to the project or its subsequent phases.
Phase 1 carries an estimated development value of US$350mil (RM1.65bil), with future expansion into advanced fuels including green hydrogen and other low-carbon energy derivatives.
This project is expected to kick off in the fourth quarter of 2026.
The planned facility will have an initial production capacity of approximately 300 metric tonnes per day, utilising Palm Oil Mill Effluent (POME) and Used Cooking Oil (UCO) as primary feedstocks.
Designed as a multi-feedstock, modular, and scalable biorefinery, the project will form part of a broader integrated SAF ecosystem spanning production, blending, and export.
Upon completion, it is expected to position Sabah as one of the largest SAF production centres in the region, with the potential to scale into a globally significant hub supporting aviation decarbonisation efforts.
“The board is of the view that the project will enable the group to further deepen its participation in the rapidly expanding SAF value chain. The project represents a strategically significant opportunity for the group to leverage its established EPCC capabilities, together with its relevant experience across the SAF value chain, in the execution and delivery of a large-scale and commercially meaningful development,” said Oiltek CEO and executive director Henry Yong Khai Weng in a statement.
Oiltek is proposing a secondary listing on the Main Market of Bursa Malaysia and has appointed M&A Securities as the advisor for this exercise.
