Renaissance Services SAOG subsidiary Topaz Energy and Marine Ltd. (Topaz) has made a dramatic entry into the buoyant hydrocarbon market in Qatar. With the acquisition of the Doha Marine Services (DMS) fleet of 14 owned and managed vessels, Topaz has added 4 of its own vessels into Qatar to corner an impressive 18% of the Offshore Marine Services sector in Qatar. The entire transaction is valued at QR 453M (approximately R.O 49M) and will be concluded in phases in compliance with the regulatory processes prevalent in Qatar.

According to a statement released by the company the acquisition increases the total size of the Topaz marine fleet to 91 vessels which includes 16 vessels under construction as part of its fleet acquisition and renewal strategy. DMS is recognized as an excellent marine services company and will be the sixth operating company in the Topaz offshore vessel fleet, joining NICO Middle East, NICO Far East, BUE Caspian, BUE Kazakh and BUE Turkmen; with a seventh marine enterprise already under formation in Saudi Arabia. The acquisition provides further evidence of Renaissance implementing its declared strategic growth plan in the oil and gas services sector. Omani and Foreign banks have supported the transaction, with the principal financing consortium led by Calyon Corporate and Investment Bank.
 

The deal also has a positive impact on commercial relations between Oman and Qatar. HE Maqbool bin Ali Sultan, minister of commerce and industry said “We are committed to developing and promoting relations within the brotherly states in the AGCC; and the relationship between Oman and Qatar is an excellent example of this”. The minister expressed his satisfaction at the ongoing cooperation between the two countries in political, economic, social and educational fields, and said “The transaction between Renaissance and DMS is an important event in the private sector commercial relations of Qatar and Oman. Investment, co-operation and economic activity of this kind, serves the interests of both countries and the people”.

Renaissance Chairman Samir J. Fancy explained “The DMS acquisition is a major event in our stated strategic intent to increase the size and geographical spread of our offshore support vessel fleet. The cornerstone of Qatar's booming economy is its hydrocarbon resources. The world's largest known non-associated offshore gas field is in Qatari territory; placing the country third in terms of world natural gas reserves. As both Qatar and Oman continue to liberalize business laws this is energizing private sector investment and increased economic activity between our two nations. Qatar offers great opportunity to a quality service provider like Renaissance and we shall certainly consider further investment in Qatar in both our onshore and offshore services”. He further added that “ aside of the obvious growth potential that our presence in this market brings, this acquisition will add significantly to the intrinsic value of our franchise and firmly establishes our credentials as the region’s leading service provider in this space. The board is absolutely delighted with this outcome”.

Topaz CEO Fazel Fazelbhoy advised his stated intent to build on the outstanding platform created by the owners of DMS. “We are buying into an extremely well respected name and a well run fleet with a blue chip customer base comprising of leaders in the Oil and Gas offshore operations. Our intention is now to add value with our international experience and well established HSEQ systems to ensure that this fleet operates at the highest levels of operational integrity.” This transaction has the full backing of the founders and current owners of DMS, Mr Mohammed Al Mansouri and Mr Jaber Al Sulaiti who felt Topaz were the best possible inheritors of DMS and have committed their fullest support to Topaz in their future endeavours in Qatar.
 

Topaz CEO Fazel Fazelbhoy with DMS Founders and Owners Mr Mohammed Al Mansoori and Mr Jaber Al Sulaiti

Renaissance CEO Stephen Thomas added “DMS is a debt-free company with a 2007 EBITDA exceeding QAR 60.5 million (RO 6.54 million), which provides us the base platform for growth, Together, the synergies and growth opportunities for DMS and Topaz are immense. Topaz brings scalability, flexibility, ambition and a proven growth record and DMS provides a superior route to market in Qatar and the Northern Gulf. When Renaissance companies come face to face with opportunity, great things happen”.

Renaissance Services SAOG is one of Oman’s most successful international services companies listed on the Muscat Securities Market, with a primary focus on oil & gas services. Besides the offshore support vessel fleet, Renaissance has engineering businesses in oil & gas fabrication and afloat ship repair; and is a leading turnkey contract services provider. Renaissance employs over 10,000 people operating in over 16 countries. Renaissance revenue in 2007 exceeded US $ 0.5 billion.