In what can be billed as one of the mega oil and gas exploration deals in the country, two local helicopter operators have clinched a RM8 billion package deal with national oil corporation, Petroliam Nasional Berhad (Petronas), to perform offshore transport missions.
Industry officials named the two as Malaysian Helicopter Services (MHS) Aviation Bhd and Weststar Aviation Sdn Bhd, which would be required to carry out air transport for offshore exploration work between Kota Baru and Kerteh for more than 10 years from April next year.
The deal includes the purchase of five Eurocopter EC 225 and nine AgustaWestland AW139 light-medium helicopters by MHS and Weststar, respectively.
Also included are training for the air and technical crew, and comprehensive support packages.
The two companies successfully made the bid over two other companies, Sabah Air and Sarawak-based Hornbill Skyways, when tenders closed in March this year, the industry officials added.
Petronas had chosen MHS and Weststar Aviation for fitting the bill.
"To add icing on the cake, a defence industry government-linked company has shown interest in acquiring a major stake in one of the companies.
"This will enhance and fortify the company's business development," industry officials said.
For the record, MHS is believed to have an existing three-year contract worth RM300 million with Petronas which will expire in March next year.
With a fleet of 25 helicopters and 585 employees, MHS has a long and credible track record in helicopter operations with more than 27 years' offshore experience. It has bases in Kerteh, Kota Baru, Miri, Labuan, Subang and Nouakchott in Mauritania.
In 1997, at the height of the economic recession, 13 entrepreneurs obtained a loan from Venture Capital for a RM260 million buyout of MHS from Tan Sri Tajuddin Ramli, who at that time was also helming Malaysia Airlines.
