Oiltek partners BioSeaga to build $350M Sustainable Aviation Fuel production facility in Malaysia

Singapore-based technology and renewable energy solutions provider Oiltek International Limited has teamed up with Brunei-based renewable fuel and food security company BioSeaga Group to co-develop a $350 million Sustainable Aviation Fuel (SAF) production facility with a planned capacity of approximately 300 tons per day, to be located in Sabah, Malaysia. Oiltek said in a bourse filing on Monday that its wholly owned subsidiary Oiltek Sdn. Bhd. (Oiltek Malaysia) has entered into a heads of agreement with Bioseaga Industries Sdn Bhd, an affiliate of BioSeaga Group, for the provision of construction services of the SAF production facility. The contract value for the project is estimated at approximately $350 million, with the final contract value to be recomputed and mutually agreed upon based on prevailing costs, finalized engineering designs and agreed scope of supply prior to Parties entering into a definitive agreement. Oiltek 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 engineering, procurement, construction, and commissioning (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. By acting as the exclusive contractor of the project, it reinforces the group’s credentials as one of the leading solutions providers in renewable fuels and sustainable energy infrastructure. Subject to entry into of the definitive agreement, Oiltek Malaysia will act as the exclusive contractor for the project, and will undertake the EPCC for the plant’s pre-treatment facilities, SAF production plant, tank farm and logistic bulking infrastructure, and partial blending facilities. Oiltek Malaysia will also provide the preliminary necessary technical expertise and data reasonably required by BioSeaga and its advisor for financial modelling and project planning. Subject to entry into of the definitive agreement, 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. BioSeaga will appoint Oiltek Malaysia as the contractor for the project on an exclusive basis. Oiltek Malaysia is an integrated process technology solutions provider in the vegetable oils industry. The firm leverages over 45 years of operational history in providing EPCC services across all different sectors of the vegetable oil industry value chain worldwide. BioSeaga is specializing in the strategic development of food security and renewable and sustainable fuel projects across the region. As a developer in the green energy transition, the firm brings strategic focus on regional food security and high-impact sustainable fuel projects; leadership in developing the SAF facility in Sabah, acting as a critical hub for cross border fuel blending and export; and engagement with top-tier project advisors to ensure project bankability. Petronas delivers Malaysia’s first locally blended sustainable aviation fuel