Sembcorp Marine's Jurong Shipyard Signs Sale and Purchase Agreement with SSP Offshore

Sep 10, 2014

Sembcorp Marine’s wholly-owned subsidiary Jurong Shipyard Pte Ltd has signed a sales and purchase agreement with SSP Offshore to acquire substantially all its business assets for US$21 million. SSP Offshore is a Houston-based company that specialises in the design, engineering and delivery of innovative floating production and drilling solutions for the oil and gas industry.

The key assets of SSP Offshore include its flagship SSP Floater technology – the next-generation circular hull form – and the company’s entire portfolio of proprietary SSP® (Satellite Services Platform) solutions, including the SSP Driller for deepwater drilling, the SSP Plus FPSO for production and storage, and the SSP Hub for logistic hub applications. The SSP base design can also be further modified for FDPSO (floating, drilling, production, storage and offloading), floating LNG, well test and early production applications as well as customised for region-specific operating requirements, harsh environments and arctic conditions.

The acquisition of SSP Offshore assets is in line with the Group’s strategy of diversifying its product offerings and expanding into new market segments to further grow its offshore and marine business. Sembmarine SSP Inc, a newly incorporated wholly-owned subsidiary of Sembcorp Marine, will continue with the new concept design and business development of its proprietary products for Sembcorp Marine.

Mr Wong Weng Sun, President & CEO of Sembcorp Marine, said: “With this acquisition, Sembcorp Marine now owns the full range of SSP intellectual property and proprietary products of next-generation SSP floaters. These will further sharpen our technological capabilities and enable us to offer a suite of innovative solutions to cater to our customers’ diverse operating requirements. With our strategic expansion into circular-based floaters, we are well-positioned to tap on new opportunities and expand our market share in the exploration & production, accommodation and logistics support segments within the offshore industry.”

Designed for operational stability, superior motion performance and improved safety, SSP floaters are built for robust operation and can be permanently moored on location during extreme or harsh sea conditions. Unlike conventional ship-shape FPSOs, the unique circular hull design offers significant advantages and fabrication flexibility as it can be built using simple block construction methods without the need for a graving dock. In addition, the SSP floater eliminates the need for turret, swivel or CALM buoy facilities for production and storage operations or offloading, translating to cost savings for customers.

This acquisition is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2014.

About Sembcorp Marine

Sembcorp Marine is a leading global marine and offshore engineering group with over 50 years of experience and proven capabilities in repair, specialised shipbuilding, building of high-specification jack-up rigs, fast-track construction of ultra-deepwater semi-submersible rigs, conversion of floating production and storage facilities as well as the engineering and construction of offshore platforms.

Headquartered in Singapore, Sembcorp Marine has a network of six shipyards in Singapore – Jurong Shipyard, Sembawang Shipyard, SMOE, PPL Shipyard, Jurong SML and Sembmarine Integrated Yard @ Tuas. The 73.3-hectare Sembmarine Integrated Yard @ Tuas Phase I facility commenced operations in August 2013. The Group’s strategic presence spans Indonesia, China, India, United Kingdom and Brazil.

Jurong Shipyard, a fully-owned subsidiary of Sembcorp Marine, is a leading shipyard offering integrated services and customised solutions in repairs & rig upgradings, ship conversion, rig building and offshore engineering to a world-wide clientele. Apart from its proven track record in building a diverse range of mobile offshore rigs from shallow to deepwater and harsh environment, Jurong Shipyard is also a global leader in the EPC conversion of tankers to floating production storage and offloading units (FPSOs), floating storage and offloading vessels (FSOs) and floating production units (FPUs).

For media and analysts enquiries, please contact:

Ms Lisa Lee 
Senior Vice President
Investor Relations & Communications
Tel No: 65-62627107 
Fax No: 65-62610738 
Email: lisa.lee@sembmarine.com 
Website: www.sembmarine.com

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