Topaz subsidiary secures USD 350 Million Agip contract

Agip KCO, a company fully owned by Italian oil major Eni S.p.A., is the Operator of the appraisal, development and future production operations in the Kazakhstan sector of the Caspian Sea, including the giant Kashagan oil field, on behalf of seven international companies and under the North Caspian Sea Production Sharing Agreement (PSA).

Under the terms of the agreement, initially, four Cutting Barges, one Mud Barge, one Dry Bulk barge and two Cargo Barges will commence operations in the fourth quarter of 2007 and will support the development by Agip KCO of the Kashagan field. The vessels are currently under construction in shipyards in Ukraine, Russia and the U.A.E. and are being built to ensure year-round operability in icy conditions that are found in the northern part of the Caspian Sea during winter periods.

The contracts are for firm periods of ten years each, with extension options for a further five years. The initial investment of over USD 43 million in the construction of the Barges further reinforces BUE Kazakhstan's commitment to maintain its position as the prime offshore fleet operator in the north of the Caspian. The potential contract value is estimated to be in excess of USD 350 million assuming that all of the contract options are exercised.

The combined Topaz-BUE fleet, owned by Renaissance, ranks amongst the largest offshore fleets in the Middle East region with operations in the Caspian, Middle East and Southeast Asian markets.

BUE Kazakhstan is a wholly owned subsidiary of Topaz Energy and Marine Ltd. one of the U.A.E.'s leading oil & gas service companies.