Topaz in strategic seven vessel breakthrough in Turkmenistan
25 October 2009Topaz Energy and Marine, through its subsidiary BUE Turkmenistan today announced the award of a USD 14 million contract with MMHE (Malaysian Marine Heavy Engineering). MMHE is operating a JV between Technip and Petronas in the construction and development of the hook up and commissioning of the Magtymguly Collector Riser (MCR-A) offshore Turkmenistan. The scope of work under the contract will include transportation to support the installation of the topside and pipe lay support from MCR-A to the onshore gas terminal. The end client is Malaysian state-owned oil major Petronas and the contract is expected to pave the way for future awards with both Petronas and Technip. The contract win means Topaz will further solidify its already leading market position in the Caspian.
Turkmenistan has proven gas reserves of approximately eight trillion m³, placing it fourth in the world after only Russia, Iran and Qatar. The country sits on several of the world’s largest gas fields, primarily in the Amu’Darya basin in the east, the Murgab Basin, and the South Caspian basin in the west. The major international oil and gas companies operating in Turkmenistan are Petronas, Dubai-based Dragon Oil, Maersk, Wintershall and Buried Hill.
Petronas has been active in Turkmenistan since 1996 when it signed a 25-year production sharing agreement (PSA) with the Turkmen Government. The PSA covered the exploration, development and production of Block 1, including the Magtymguly (East Livanov), Garagel-Deniz (Gubkin) and Deyarbekir (Barinov) fields. Block 1 is located approximately 80 km southwest of Turkmenbashi. This was the first PSA to be awarded by the government of Turkmenistan and by the end of 2008, Petronas had invested USD 1.8 billion in Turkmenistan.
The Topaz contract will involve Topaz operating seven marine assets worth in excess of USD 60 million in the Carigali field offshore Turkmenistan. The vessels are three anchor handling tug supply vessels (AHTS), two barges for pipe lay support, one fast crew boat and one towing vessel. Topaz Marine has been active in the Caspian for more than a decade and operates a fleet of circa 70 vessels in Azerbaijan, Turkmenistan and Kazakhstan.
Topaz CEO, Fazel A. Fazelbhoy commented; “This contract award is of tremendous strategic importance to Topaz. Turkmenistan as a gas exporting country has great untapped potential and to establish relationships with two such stalwarts as Petronas and Technip in the Turkmen oil and gas industry is of immense value for the future. This contract is aligned with Topaz’s strategic focus on providing high quality marine assets for term-contracts providing longer earnings visibility and stable investor returns. With support of our strong ties with international financial institutions, Topaz’s growth path continues to look extremely healthy.”
Fazelbhoy continued, “The confidence that Petronas and Technip has shown in Topaz is a reflection of our long-term commitment to the Caspian and our ability to deliver in times of financial turbulence. Topaz is privileged to be part of the growth of Turkmenistan’s oil and gas sector and we look forward to continue to develop our relationship with Petronas and Technip.”
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 OSV owning and operating division of Topaz operates a modern fleet of 100 vessels and is one of the top ten OSV companies in the world. The Topaz Marine fleet comprises numerous AHTS’s, PSV’s, a DP2 cable laying vessel, a DP2 subsea construction barge, a DP2 maintenance support vessel, ERRV’s, Workboats, Crew Boats, Flotels, Ice Breakers, Survey Vessels and a variety of specialized barges.
Topaz Marine COO, Roy Donaldson said in a statement, “Topaz’s laudable health, safety and environmental track record, low average fleet age and extensive experience in working with oil and gas blue-chips in the region were crucial factors in the award.”
He continued, “In support of the contract, Topaz will deploy modern and high-spec marine assets that will make a real impact in the local market since the Turkmen sector of the Caspian has historically been dominated by older tonnage.”
Topaz will expand its existing infrastructure in Turkmenistan to support the vessel deployment. A GM for Turkmenistan has been appointed and will ensure the same safe and efficient service delivery that has made Topaz the Caspian’s OSV (offshore support vessel) market leader. The setup of the local vessel management infrastructure reflects Topaz’s ethos of being close to its customers.
ABOUT TOPAZ ENERGY AND MARINE
Topaz Energy and Marine is today one of the world’s leading marine services and oil & gas fabrication companies with over 35 years of experience in the Middle East.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. With its operational headquarters in Dubai, UAE, Topaz operates under two primary business divisions – Topaz Marine and Topaz Engineering. Topaz Marine; the offshore support vessels division comprises Nico Middle East, Doha Marine Services, Topaz Saudi Arabia, BUE Caspian, BUE Kazakhstan & BUE Turkmenistan. Topaz Engineering comprises Adyard (Abu Dhabi) and Nico International.
For further information on Topaz Energy and Marine:
Monika Baranwal
Corporate Communications Officer
Tel: +971 4 339 13 51
[email protected]