Topaz signs long-term agreement with Reach Subsea

Namely, Reach Subsea and MMT have over the last year been awarded several frame agreements for survey, IMR and light construction within both the oil & gas and renewable sectors. The subsea vessel Topaz Tiamat was hired for 2.5 years, with three yearly options thereafter, Reach said on Thursday. Topaz ordered this vessel in 2015 as part of an ongoing fleet renewal and reinvestment strategy. Topaz Energy and Marine, a leading offshore marine logistics company has signed a long-term agreement with Reach Subsea under which Reach will charter the newbuild subsea vessel, Topaz Tiamat.

In a separate statement on Thursday, Topaz said it will immediately initiate the vessel’s mobilization including minor upgrades from its current position in Norway for a mid-February delivery to Reach. The charter envisages a battery pack upgrade that will even further drive fuel savings and reduce the vessel’s environmental footprint, Reach said. Topaz Tiamat will be deployed into the co-operation agreement Reach has with MMT.

The commercial terms of the charter agreement are confidential between the parties, but are structured in a way that enables Reach and MMT to offer subsea services to clients for the next 5.5 year period. Topaz ordered this vessel in 2015 as part of an ongoing fleet renewal and reinvestment strategy. 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 Topaz Tiamat will be mobilized with ROVs from within the current Reach ROV fleet. Thus, investments associated with this expansionary move are limited at the outset, Reach noted. The vessel is intended to be used for Reach and MMT’s own projects within survey, IMR and light construction within the oil & gas and renewables sectors. 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.

Jostein Alendal, CEO of Reach, said:

“We are very pleased to be able to offer a next generation subsea spread to our clients, an energy efficient vessel that fits nicely into our focus markets. The Topaz Tiamat is the first vessel chartered from Topaz, but based on their professionalism and proactive approach, we believe this will be the start of a successful and productive cooperation going forward.”

Rene Kofod-Olsen, CEO of Topaz Energy and Marine, said: “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 a strong subsea partner like Reach Subsea and we look forward to continue finding innovative ways of serving the offshore energy industry together. Reach Subsea has entered into an agreement with Topaz Energy and Marine (‘Topaz’) for use of the newbuild subsea vessel Topaz Tiamat for 2.5 years, with three yearly options thereafter.

Topaz Tiamat will be deployed into the successful co-operation agreement Reach has with MMT. The commercial terms of the charter agreement are confidential between the parties, but are structured in a way that enables Reach and MMT to offer a competitive subsea service to our clients for the next 5.5 year period. 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 1000 m², diesel-electric light subsea construction vessel with 82 pax accommodation in comfort class 3, equipped with an AHC 120 t 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. The Topaz Tiamat will be mobilised during Q1 2019 with ROVs from within the current Reach ROV fleet. Thus, investments associated with this expansionary move are limited at the outset. The vessel is intended used for Reach and MMT’ own projects within Survey, IMR and light construction within the oil and gas and renewables sectors. This subsea spread is well suited for our core focus markets and has a good fit with the tenders we currently have outstanding.

Jostein Alendal, CEO of Reach says: “We are very pleased to be able to offer a next generation subsea spread to our clients, an energy efficient vessel that fits nicely into our focus markets. The Topaz Tiamat is the first vessel chartered from Topaz, but based on their professionalism and proactive approach, we believe this will be the start of a successful and productive cooperation going forward. The Topaz Tiamat is a 1,000 m², diesel-electric light subsea construction vessel with 82 pax accommodation in comfort class 3, equipped with an AHC 120-tonne subsea construction crane. Rene Kofod-Olsen, CEO of Topaz Energy and Marine said: “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 a strong subsea partner like Reach Subsea and we look forward to continue finding innovative ways of serving the offshore energy industry together.” Norwegian based Reach Subsea said it has entered an agreement with Dubai headquartered Topaz Energy and Marine to charter newbuild light subsea construction vessel Topaz Tiamat for 2.5 years, plus three one-year options. The Norwegian-built vessel will be deployed under a cooperation agreement between Reach and Sweden’s MMT. The team has been awarded several frame agreements for survey; inspection, maintenance and repair; and light construction within the oil and gas and renewable sector over the last year.

Reach said the commercial terms of the charter agreement are confidential, but noted the deal is structured to facilitate a competitive subsea services offering for the next 5.5 years. 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 DP2 Topaz Tiamat is a 98-meter, diesel-electric light subsea construction vessel with 82 passenger accommodation, equipped with an AHC 120-metric-ton subsea construction crane. It was ordered from VARD Norway in 2015 as part of Topaz’s ongoing fleet renewal and reinvestment strategy. Topaz said the vessel will be delivered to Reach in mid-February following minor upgrades, including a battery pack upgrade and the integration of two hangar deployed, deepwater capable work-class remotely operated underwater vehicles (ROV) from Reach’s current fleet. Jostein Alendal, CEO of Reach, said, “We are very pleased to be able to offer a next generation subsea spread to our clients, an energy efficient vessel that fits nicely into our focus markets.

The Topaz Tiamat is the first vessel chartered from Topaz, but based on their professionalism and proactive approach, we believe this will be the start of a successful and productive cooperation going forward.” The vessel is built to the highest North Sea standards, with world-class station keeping and fuel economics. Rene Kofod-Olsen, CEO of Topaz Energy and Marine, said, “The Topaz Tiamat and its sister vessel Topaz Tangaroa represent 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.” Topaz said the charter adds to its revenue backlog which prior to this signing stands at US$1.4 billion. Topaz’s cable-lay vessel, the ‘TEAM Oman’ has been contracted to ABB for a five year wind farm support contract plus options. The work will commence in early 2012 and involves a significant upgrade to the vessel which will enable her to carry out all interconnector and repair work in the wind farm industry. This award is in direct continuation of a successful two year charter in the North Sea renewable energy sector for ABB AB, High Voltage Cables. In the Arabian Gulf, the newly built anchor-handling tug supply vessel, the ‘Topaz Khubayb’ has been awarded a three year contract plus options with Saudi Aramco.

Topaz operates in Saudi Arabia through a joint venture with the GENTAS Group. Roy Donaldson, Chief Operating Officer of Topaz Marine, said: “We are delighted to announce these two new contracts with prestigious clients that both fit well with Topaz’s strategic growth objectives. The prominent and fast growing Saudi Arabian market is an exciting area for the company as is therenewable energy space. Together the contracts are worth more than US$ 160 million including customer options.” Topaz also recently saw the launch and delivery of the high speed aluminium catamaran crew boat, ‘Topaz Zenith’ to RAK Petroleum Oman Limited. The vessel, constructed by Topaz Ship Building will be deployed supporting RAK Petroleum Oman Limited’s operations in the Sultanate of Oman on a three year contract with additional customer options. The charter adds to Topaz’s industry-leading revenue backlog which prior to this signing stands at $1.4 billion.

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