Oiltek International Limited said its wholly owned subsidiary, Oiltek Sdn. Bhd., has signed a heads of agreement with Bioseaga Industries Sdn Bhd on Apr, 06 2026 to act as the exclusive engineering, procurement, design, construction and commissioning contractor for a proposed sustainable aviation fuel (SAF) facility in Sabah, Malaysia.

The planned plant will have a production capacity of about 300 metric tonnes per day and an estimated contract value of roughly US$350 million. Under the agreement, Oiltek will design and build the pre-treatment facilities, SAF production plant, tank farm, logistics infrastructure and partial blending facilities. Oiltek also obtained a right of first refusal to participate in any future equity stake or joint-venture opportunities related to the project.

The heads of agreement runs for one year and includes a six-month target to conclude a definitive contract, subject to project financing, regulatory approvals, land rights and final technical specifications. During the term, Bioseaga has granted Oiltek exclusive contractor status and will not negotiate with other parties for the project’s construction.

Oiltek said it will announce further details once definitive agreements are reached, and cautioned shareholders that there is no certainty the project will proceed.