Topaz Energy and Marine has signed a contract with BP to provide 14 offshore support vessels to support projects in Azerbaijan.
Topaz, which is a subsidiary of Oman’s Renaissance Services, said that the deal would cover a five-year period, plus two one-year options, which will potentially involve it providing these vessels at market rates until 2023. They will be used at BP’s ACG and Shah Deniz II fields in the Caspian Sea, off the coast of Azerbaijan.
Topaz said that signing this deal would bring its global revenue backlog up to US$1.4 billion.
“The agreement provides a long-term platform from which to build further scale in the broader Caspian and adds significantly to Topaz’s credit strength through tremendous revenue visibility,” said the chief executive René Kofod-Olsen.
Recently filed financial results for Renaissance Services show that in 2015, Topaz Energy and Marine suffered a 7 per cent decline in revenue to $359.7 million and its operating profit fell by 22 per cent to $104.9m. On top of this, it faced a further $92.7m of one-off charges, which included a $70.9m writedown off the value of its existing fleet.
The market for offshore services vehicles has taken a hammering as oil and gas contractors have sought to cut costs in response to lower oil prices.
Despite this, the Renaissance Services chief executive Stephen Thomas said that it had held talks with lenders regarding the possibility of picking up distressed assets “at prices that offer a good return even in the current market”.
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