Reach Subsea awards long-term agreement to Topaz Marine’s new subsea vessel
- Business & Finance
Ahead of expected increase in activity, Norwegian operator Reach Subsea has entered into an agreement with Topaz Energy and Marine for the use of the newbuild subsea vessel Topaz Tiamat.
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.
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.
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.
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.”