Topaz Oil and Gas Ltd and its subsidiaries were bought by UK-based Interserve for US$46m.
Oman’s Renaissance Services sells engineering unit of Topaz Marine and Energy subsidiary
Oman’s Renaissance Services has sold the engineering unit of its Topaz Marine and Energy subsidiary for US$46m.
Topaz Oil and Gas Ltd and its subsidiaries were bought by UK-based Interserve.
The unit has been a drag on Topaz’s finances in recent years, plunging the company into loss in 2011, and reducing profits in 2012.
Renaissance retains Topaz’s profitable marine operations, which centre on providing specialised vessels to the offshore oil and gas industry.
“This frees Renaissance to focus on its core enterprises,” said Stephen Thomas, Topaz’s chief executive in a statement.
Interserve, which provides support services to sectors spanning from aviation to retail, sees Topaz Oil and Gas as a way into the lucrative Middle East energy sector.
"Interserve sees the Middle East oil and gas services sector as a key growth market and this acquisition establishes our presence in the UAE,” said Interserve chief executive Adrian Ringrose.
The unit’s clients include Abu Dhabi National Oil Company (Adnoc), Shell, Qatar Gas and RAK Petroleum, according to a statement on the sale on the Oman Stock Exchange website.
In 2011, Topaz reported an $11m annual loss, largely on the back of the engineering unit’s poor performance.
A planned initial public listing on the London Stock Exchange was postponed in the same year.
The following year, a $30.1m loss at Topaz Oil and Gas reduced the company’s overall profit to $57.3m.
In the first six months of 2013, the unit had returned to profitability, said Renaissance.
Topaz’s Marine and Energy has a fleet for around 100 vessels, serving in the Caspian, the Middle East and the Latin America. Its also builds and modifies boats that cater to the industry, and constructs oil and gas installations.
Renaissance’s other business streams revolve around services such as catering and training, as well as publishing.