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.
For further information:
L. Daniel Wilson, President, at (403) 358-1110 (phone); or via email at [email protected].