Oiltek International Ltd, listed on the Singapore Exchange, has partnered with Brunei-based BioSeaga Industries to develop a large-scale Sustainable Aviation Fuel (SAF) biorefinery in Sabah, Malaysia. The project, valued at $350m (RM1.65b), is set to commence in the fourth quarter of 2026, with an initial production capacity of 300 metric tonnes per day.
Oiltek Sdn Bhd, a subsidiary of Oiltek, has been appointed as the exclusive engineering, procurement, construction, and commissioning partner for the facility. The plant will utilise Palm Oil Mill Effluent and Used Cooking Oil as primary feedstocks, contributing to a multi-feedstock, modular, and scalable design. This initiative aims to position Sabah as a significant SAF production centre in the region.
The project is part of a broader SAF ecosystem that includes production, blending, and export. Future expansions are planned to incorporate advanced fuels such as green hydrogen and other low-carbon energy derivatives. Oiltek’s CEO, Henry Yong Khai Weng, stated, “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.”
Oiltek is also planning a secondary listing on the Main Market of Bursa Malaysia, with M&A Securities appointed as the adviser. Upon completion, the facility is expected to support aviation decarbonisation efforts globally, enhancing Oiltek’s role in the renewable energy sector.
