Wednesday 17th, August 2016

Renaissance Services has announced that the first phase of its new Renaissance Village in Duqm is due to be opened before the end of this year.

The project, which is targeted at staff of companies operating at the Special Economic Zone (SEZ), is currently under implementation.

"We expect occupancy build-up to be slow in the initial months of operation," said Samir J Fancy, Chairman. "Duqm remains a bright area of activity in the economy with projects progressing, albeit a little slower than planned. We expect our Duqm project to be an ever-increasing engine for growth in 2017 and the years ahead," he stated in the Directors' Report of the company's performance for the first six months ended June 30, 2016.

Renaissance Services has also acquired an 80 per cent controlling stake in Emirates Taste Catering Services LLC (ETC) in Abu Dhabi UAE, to be effective on September 1, 2016, said Fancy.

"While this acquisition is not of material size, ETC has an excellent reputation with a number of secured contracts providing services from a central production unit (CPU) to various commercial outlets, factories, schools and other clients. ETC represents a slight diversification from our traditional contract services business, which shall continue to be developed in Abu Dhabi through Renaissance Facilities Management Services LLC (RFMS); while ETC has potential to grow in the niche market operated from a first class CPU. The acquisition gives us a profitable base from which to develop the market," the Chairman stated.

Meanwhile, leading offshore support vessel company Topaz Energy and Marine, which is a subsidiary of Renaissance Services, outperformed its global peers despite constrained economic situation, Fancy said.

In Q1 Topaz won the BP contract extension in Azerbaijan -- which extends the contract tenure of 14 vessels until 2023. In Q2, Topaz, in consortium with Blue Water Shipping, secured a contract to supply and operate 15 vessels for the Tengizchevroil (TCO) joint venture in Kazakhstan for a contract value in excess of $350 million.

Under the terms of the agreement, Topaz will commission the construction of 15 newly designed Module Carrying Vessels (MCVs). The vessels will commence work in Q2 2018 for a minimum contract period of three years. The innovative vessels have been designed in collaboration with Vard Shipyard Group, and crafted to navigate shallow river systems as they transport modules and cargoes through the Russian waterways to the Tengiz oilfield in Kazakhstan. The first tranche of investment in these vessels commenced in Q2.

"Contract gains of this kind, and Topaz continuing ability to invest in its future in these most trying times, demonstrate the underlying strength of the company in extraordinary market conditions," the Chairman added.

© Oman Daily Observer 2016