Kuala lumpur: Weststar Group is not affected by the ongoing crisis in West Asia, having strategically exited its offshore transportation operations in the region since late last year. Weststar Group managing director Tan Sri Syed Azman Syed Ibrahim confirmed that the company had previously operated in Saudi Arabia for approximately three years but made the decision to withdraw in anticipation of rising instability.
According to BERNAMA News Agency, Syed Azman stated, "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." This was disclosed to reporters during a press conference following the signing of a RM2 billion financing deal between Weststar Aviation Services and AMMB Holdings Bhd.
Weststar Aviation Services Sdn Bhd, the group's aviation division, had been operational in Al-Khafji, Saudi Arabia, where it deployed two helicopters for offshore crew changes, medical evacuation, and search-and-rescue missions. These services supported oil and gas exploration, development, and production activities in the offshore area between Saudi Arabia and Kuwait.
Additionally, Syed Azman highlighted that Weststar Group's operational costs remain unaffected by current oil and gas prices, as fuel expenses are categorized as pass-through costs under their contracts. At the time of writing, Brent crude oil was priced at US$107.5 per barrel.
He further added that the global energy crisis triggered by the West Asia conflict is expected to drive increased activity in trading, exploration, and transportation sectors. "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 remarked.
The West Asia conflict commenced on February 28 when the United States and Israel launched coordinated strikes on Iran, leading to Tehran's retaliation with missile and drone attacks against US forces and allied targets in the region. This conflict has significantly impacted the global energy market, especially when Iran effectively blocked the strategic Strait of Hormuz, a vital chokepoint for approximately 20 percent of the world's oil supply.