Oiltek International‘s wholly owned subsidiary Oiltek Sdn Bhd has entered into a heads of agreement with Bioseaga Industries Sdn Bhd for the provision of construction services for a Sustainable Aviation Fuel production facility in Sabah, Malaysia, with a planned capacity of approximately 300 metric tonnes per day. The contract value is estimated at approximately US$350 million, with the final value to be recomputed and mutually agreed before the parties enter into a definitive agreement.
Subject to a definitive agreement, Oiltek Malaysia will act as exclusive contractor, undertaking the EPCC for the plant’s pre-treatment facilities, SAF production plant, tank farm and logistic bulking infrastructure, and partial blending facilities. It will also hold a right of first refusal on any equity investment, joint venture or ownership opportunity in the Project or its subsequent phases. BioSeaga, an affiliate of the Brunei-based BioSeaga group developing food security and sustainable fuel projects, is positioning the Sabah facility as a hub for cross-border fuel blending and export.
The HOA runs for one year from 6 April 2026, with the parties to use best endeavours to execute a definitive agreement within six months. Execution is conditional on secured project financing, regulatory approvals, land-right confirmation and agreement on final specifications, pricing and scope. The Company has cautioned that there is no certainty any definitive agreements will be entered into or that the transactions contemplated will be completed, and shareholders are advised to exercise caution when dealing in its securities.
