Oiltek Wins US$350M Contract For SAF Plant In Sabah

Oiltek International has signed a heads of agreement with Brunei-based Bioseaga Industries to develop a US$350 million sustainable aviation fuel (SAF) plant in Sabah, marking a major project for the company. For comparison, Oiltek’s total order book stood at RM350 million as at Feb 23.

Under the agreement, Oiltek will act as the exclusive contractor for the project and may also consider taking an equity stake at a later stage. The proposed plant is expected to have a production capacity of approximately 300 metric tonnes per day.

Bioseaga Industries, part of the BioSeaga group, focuses on food security initiatives as well as renewable and sustainable fuel development. The collaboration is expected to support the growth of sustainable aviation fuel production in the region.

Oiltek said the project represents a strategically significant opportunity to strengthen its participation in the fast-growing SAF value chain. By serving as the exclusive contractor, the company believes it will further reinforce its position as a solutions provider in renewable fuels and sustainable energy infrastructure.