Topaz Energy and Marine (Topaz), a leading offshore energy logistics company, announced yesterday that it has signed contract extensions for 12 of its vessels currently supporting the offshore operations of BP Exploration (Caspian Sea) Limited ("BP") in Azerbaijan.
Under the terms of the agreement, seven of the offshore support vessels will be under contract until 2025, three until 2023 and two until 2022. The extended contracts all include a two-year option to extend. The agreement has materially increased our backlog, while also converting a significant portion of our "options" backlog to "firm" backlog.
This agreement further enhances Topaz's very robust position and focus in the Caspian Sea and demonstrates the strength of our logistics offering amongst a blue-chip customer base. Our total fleet serving in Azerbaijan currently stands at 21 vessels.
Topaz's current fleet contracted by BP through this agreement spans large anchor-handlers, platform supply vessels and emergency response and recovery vessels. The vessels will continue to support BP's work on the Shah Deniz and ACG fields in the Azerbaijan sector of the Caspian Sea.
Azerbaijan remains a key strategic region for Topaz and as a long-term operator, Topaz has demonstrated its commitment to Azerbaijan through important in-country value creation with local partnerships, high levels of local employment, supply chain development and significant investments over many years.
René Kofod-Olsen, Chief Executive Officer, Topaz Energy and Marine, said:
"Our willingness and ability to commit to long-term contracts with a leading oil major, such as BP, reflects the strength of our partnering approach in the relationship with BP and the value of our differentiated marine logistics offering - I wish to thank BP for their continued confidence in our people and pedigree. This contract extension adds important secured revenue and credit strength to our balance sheet, laying further foundation for a solid 2019 and beyond.
The Caspian has been a strategic region for Topaz for more than two decades and this agreement in Azerbaijan demonstrates our commitment to building on our existing position supported by our highly-valued partners in the country."