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
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.
For further information:
L. Daniel Wilson, President, at (403) 358-1110 (phone); or via email at firstname.lastname@example.org.