Topaz raises $23m for vessel finance

The vessel will be deployed in the Caspian Sea in support of a ten-year $225m contract recently signed with BP.

The vessel will be renamed 'Caspian Server' and will operate in the waters of Azerbaijan on a ten year charter contract to global oil major BP. The loan of $23m was financed by DVB Bank of Germany, the leading specialist in international transport finance.

Topaz CEO, Fazel A. Fazelbhoy said in a statement:

"Being able to secure finance facilities for the expansion of our fleet in this turbulent economic environment is a testament to Topaz's financial solidity, our blue-chip Client base and the great trust placed in our growth by our bankers."

Geir Sjurseth, Managing Director & Global Head Offshore Support group, DVB Bank SE, stated, "DVB Bank is delighted to continue to support Topaz's growth and in particular to contribute long term financing for the 'Caspian Server'."

The handover of the 'Caspian Server' is the first in a series of vessel deliveries in support of the BP contract. An Emergency Recovery and Response Vessel (ERRV) with three daughter craft and an Anchor Handling Tug Supply Vessel (AHTS) are currently under construction and will be delivered in 2010.

The BP contract was won in September 2008 in competition with several global players and Fazelbhoy was quoted as saying, "The contract award is a vote of confidence in Topaz's capabilities and commitment to the highest standards of Health, Safety, Security and Environmental Quality."

The 'Caspian Server' is a DP2 PSV. The overall length is 73.6 meters with a moulded beam of 16 meters. The vessel was built by Simek, Norway and will be mobilized from Frederikshavn, Denmark via the Volga-baltic canal to Baku in Azerbaijan.

Topaz Marine, the newly formed Offshore Support Vessel (OSV) owning and operating division of Topaz dominates the OSV market in the Caspian Sea. Topaz Marine operates a fleet of 90+ vessels and is one of the top ten Offshore Support Vessel companies in the world. The Topaz Marine fleet consists of AHTS's, PSV's, DP2 cable laying vessels, ERRV's, Workboats, Flotels, Ice Breakers, Survey Vessels and a variety of barges.

"The diversity, high specifications and low age of our fleet and the highest quality mariners are Topaz Marine's prime competitive advantages. The addition of the 'Caspian Server' will contribute to a further reduction of the average age of our already modern fleet," said Roy Donaldson, Chief Operating Officer of Topaz Marine Division.

Topaz Energy and Marine reported record results for 2008 for the eighth consecutive year. With revenues increasing by 39% and EBITDA by 42%, Topaz has entered 2009 with a strong order book and a portfolio of long term contracts.