SSP Offshore Announces Agreement with Offshore Division of
Yangzijiang to Commence Construction of first SSP Unit
HOUSTON, TX,
Dec. 1, 2012 /CNW/ - SSP Offshore
Inc. announces that its Asian affiliate, SSP Asia Pte Ltd. ("SSP
Asia"), has entered into a Letter of Intent dated November 29, 2012 (the "Yangzijiang LOI") with
Jiangsu Yangzijiang Offshore Engineering Co. Ltd. ("Yangzijiang")
under which Yangzijiang will commence detailed design and
construction engineering for the construction of the first SSP
unit.
Yangzijiang is a wholly-owned subsidiary of
Yangzijiang Shipbuilding Holdings Ltd., a publicly traded company
listed on the Singapore Stock Exchange and Taiwan Stock Exchange
that owns and operates one of the largest group of private
shipyards in China. The
Yangzijiang Group is well established in the construction of
container ships, having delivered more than 60 newbuild vessels to
clients throughout the world during the past year with a reputation
for high quality construction. The Yangzijiang Group has
recently invested heavily in further upgrading its construction
facilities in the Shanghai region
of China, and is now prioritizing
their expansion into the fabrication of offshore
infrastructure. Included in the Yangzijiang Group's recent
infrastructure investment is the completion of the largest drydock
in China (147 meters wide) with
two gantry cranes of SWL 1000 ton spanning 200 meters each over the
drydock and staging area.
The Yangzijiang Group has also recently
completed the acquisition of a controlling interest in an
established naval architecture firm and in an established
production process engineering firm which have experience in the
offshore oil and gas industry.
Under the terms of the Yangzijiang LOI,
Yangzijiang has committed to complete the detailed design and
construction engineering for a SSP unit. Yangzijiang has also
committed to commence early-stage construction of the initial SSP
unit upon completion of the construction engineering.
In exchange for the investment being made by
Yangzijiang on behalf of SSP, SSP Offshore Inc. has granted certain
exclusivity rights for the SSP platform construction to
Yangzijiang.
As a result of the support of Yangzijiang under
the Yangzijiang LOI, the schedule for construction and delivery of
the first SSP unit once an end-user contract has been secured will
be significantly compressed. Management believes that the
ability to offer an expedited delivery schedule on SSP units will
be of significant benefit in its marketing efforts, and that having
access to the resources of a reputable shipyard with established
processes, an experienced workforce and superior yard
infrastructure will be of significant value in the ongoing SSP
commercialization efforts.
SSP Chief Executive Officer, Paul Illingworth, stated that "the significant
investment being made by the Yangzijiang Group under this agreement
demonstrates the belief that this world class shipbuilding group
places on the SSP technology and its commercial potential. We
are excited to have Yangzijiang as a key execution partner."
About SSP Offshore Inc.
SSP Offshore is a public company listed under
the symbol "SSZ" on the TSX Venture Exchange. SSP Offshore is
actively commercializing its proprietary SSP® FPSO platform design
in two formats: (i) SSP Base; and (ii) SSP Plus. Visit the
company's website at www.sspoffshore.com for more information.
The TSXV has neither approved nor disapproved
of this press release.
SOURCE SSP Offshore Inc.