KOTA KINABALU – Singapore Exchange (SGX) Mainboard-listed Oiltek International Ltd (“Oiltek”) and Brunei-based BioSeaga Industries Sdn Bhd (“BioSeaga”) have entered into a Heads of Agreement to jointly develop a US$350 million (RM1.65 billion) large-scale Sustainable Aviation Fuel (SAF) biorefinery with a planned production capacity of 300 metric tonnes per day in Sabah, Malaysia.

Oiltek is currently proposing a secondary listing on the Main Market of Bursa Malaysia and has appointed M&A Securities Sdn Bhd as the adviser for the exercise.

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, logistics bulking infrastructure, as well as partial blending facilities.

Oiltek Malaysia will 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$350 million (RM1.65 billion), with potential future expansion into advanced fuels including green hydrogen and other low-carbon energy derivatives.

The project is expected to commence 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 its 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, the facility 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.