Weststar Unaffected By West Asia Crisis After Exiting Region
KUALA LUMPUR, April 6 (Bernama) -- Weststar Group is not affected by the West Asia crisis, having exited its offshore transportation operations in the region since late last year.
Weststar Group managing director Tan Sri Syed Azman Syed Ibrahim said the company had operated in Saudi Arabia for about three years but opted to withdraw after anticipating rising instability.
“We are not affected (with the West Asia crisis) as we had already exited the market. We anticipated the instability and, after three years, decided to pull out,” he told reporters at the press conference after the signing of a RM2 billion financing deal between Weststar Aviation Services and AMMB Holdings Bhd here today.
Through its aviation arm, Weststar Aviation Services Sdn Bhd, the group previously operated in Al-Khafji, Saudi Arabia, deploying two helicopters for offshore crew changes, medical evacuation and search-and-rescue missions supporting oil and gas exploration, development and production activities in the offshore area between Saudi Arabia and Kuwait.
Meanwhile, Syed Azman said Weststar Group’s operating costs remain unaffected by current oil and gas prices, as fuel expenses are treated as pass-through costs under its contracts.
At the time of writing, Brent crude oil stood at US$107.5 per barrel.
He added that the global energy crisis stemming from the West Asia conflict is expected to spur greater activity in trading, exploration and transportation.
“We foresee that there will be more trading, exploration and transportation. All these activities require transportation, be it by sea or by air. So, we see this as an opportunity to have more contact with trade,” he said.
The West Asia conflict began on Feb 28 when the United States (US) and Israel launched coordinated strikes on Iran, prompting Tehran to retaliate with missile and drone attacks against US forces and allied targets in the region.
The conflict affected the global energy market when the strategic Strait of Hormuz, a critical chokepoint for the passage of about 20 per cent of the world’s oil supply, was effectively blocked by Iran.
-- BERNAMA