Topaz Signs Long-Term Agreement With Reach Subsea

Topaz Energy and Marine (“Topaz”), a leading offshore marine logistics company has signed a long-term agreement with Reach Subsea (“Reach”) under which Reach will charter the newbuild subsea vessel, Topaz Tiamat. Topaz ordered this vessel in 2015 as part of an ongoing fleet renewal and reinvestment strategy.

Topaz will immediately initiate the vessel’s mobilization including minor upgrades from its current position in Norway for a mid-February delivery to Reach for the firm two-and-a-half-year charter, with three yearly options thereafter. The agreement fairly reflects market terms in addition to an innovative profit sharing agreement between the parties from the use of the vessel in support primarily of IMR, subsea construction and survey projects.

The Topaz Tiamat is a 1,000m², diesel-electric light subsea construction vessel with 82 pax accommodation in comfort class 3, equipped with an AHC 120-tonne subsea construction crane. The vessel is built to the highest North Sea standards, with world-class station keeping and fuel economics. The charter envisages a battery pack upgrade that will even further drive fuel savings and reduce the vessel’s environmental footprint, and the integration of two hangar deployed, deep-water capable work-class Remotely Operated Vehicles.

The charter adds to Topaz’s industry-leading revenue backlog which prior to this signing stands at US$1.4B.

Rene Kofod-Olsen, CEO of Topaz Energy and Marine said:
“The Topaz Tiamat, and its sister vessel Topaz Tangaroa, represents Topaz’s strategic reinvestment into the growing subsea segment. This newbuild project was executed counter-cyclically at a time of great turmoil in the broader offshore market, making it particularly rewarding to see the first vessel leave the yard and, as expected, go straight onto a significant long-term contract with a strong subsea partner like Reach.

The Tiamat and Tangaroa, designed with, and built by, VARD Norway, set new benchmarks in efficiency, operability and cost-competitiveness. These vessels, along with Topaz’s agile commercial mindset and reliability as a counterparty, have allowed us to forge a new long-term partnership with Reach Subsea and we look forward to continue finding innovative ways of serving the offshore energy industry together.”

Established in 2008, Reach Subsea is a Norwegian operator, listed on the Oslo Stock Exchange, that provides IMR, ROV, Survey, Construction Support and Decommissioning services to the oil and gas industry.

About Topaz Energy And Marine
Topaz Energy and Marine is a leading international offshore support vessel company providing logistics support and marine solutions to the global energy industry with primary focus on the Caspian Sea, the Middle East, West Africa and with Subsea operations in the North Sea. Headquartered in Dubai, Topaz Energy and Marine operates an existing fleet of about 120 offshore support vessels with an average age of approximately 8 years. Topaz Energy and Marine is a subsidiary of Renaissance, a publicly traded company listed on the Muscat Securities Market in Oman. In addition, Standard Chartered Private Equity holds a minority position in the company.