Topaz secures $100m Agip contract

Under the contract, Topaz will custom-build, own and operate six specialized barges over a ten-year period to support Agip's development program in the Kashagan field in the Northern Caspian.

The award means Topaz will further solidify its already leading market position in the Caspian. Topaz has successfully worked in Kazakhstan for more than ten years.

Topaz CEO, Fazel A. Fazelbhoy, commented on the award:

"Topaz is privileged to be part of the growth of Kazakhstan's oil & gas sector and we look forward to continue to develop our relationship with Agip KCO and the NCOC. This ten-year contract is aligned with Topaz's focus on longer term contracts providing stable cash-flows and investor returns over a number of years. With support of our strong ties with international financial institutions, Topaz's growth path continues to look healthy even in these recessionary times."

The six ice-class barges will be deployed in 2010 and are three cutting, one liquid-mud and two flat-top barges. Each is specialized to handle icy conditions and the units are all low-draft when fully loaded. These features are essential to operating in the shallow waters and harsh weather conditions of the Kashagan field.

The Kashagan oilfield is one of the largest hydrocarbon discoveries in the last four decades with estimated recoverable reserves of more than 10 billion barrels. The field is expected to eventually double Kazakhstan's output to approximately 3 million barrels per day.

Roy Donaldson, COO of Topaz Marine, said in a statement, "The confidence that Agip has shown in Topaz is a reflection of our long-term commitment to the Caspian and our ability to deliver in these times of global financial turmoil. Topaz has made substantial investments in vessel and infrastructure expansions in support of Agip's development program and we will continue to expand in the region."

The contract award is in addition to another recent Caspian win of $225m with BP. Under that contract, Topaz will operate three vessels in support of BP's program in Azerbaijan over the next ten years.

Topaz is a wholly owned subsidiary of Renaissance Services SAOG, a publicly traded company on the Muscat Securities Market. Operating throughout the Middle East and the Caspian with vessel operations in North Africa and S.E. Asia, Topaz employs over 6,000 people.

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 modern fleet of 95+ 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.