SSP Offshore Enters MoU to Pursue FPSO Projects in Brazil and West Africa

SSP Offshore announces that it has entered into a Memorandum of Understanding (the “MOU”) with a new strategic partner to jointly pursue floating storage, production and offloading (“FPSO”) projects in Brazil and internationally based on the Corporation’s proprietary round SSP designs.

The new strategic partner is an entity with extensive experience in the fabrication, installation and operation of offshore floating oil and gas infrastructure worldwide.

The MOU provides that this entity will exclusively bid the SSP design for FPSO projects in Brazilian territorial waters for a three year period, and in return SSP Offshore commits to work exclusively in partnership with the strategic partner over the same time period through a joint venture structure (on terms yet to be defined) for all Brazilian FPSO projects for which in-country hull fabrication is commercially advantageous.

The MOU also allows for the cooperation of the parties on a non-exclusive basis for FPSO projects outside of Brazil, with a particular focus on prospective projects in West Africa.

Paul Illingworth, CEO of SSP Offshore, stated that “we are extremely pleased to have been selected by our new strategic partner as key component of their future Brazilian FPSO strategy. This organization is a recognized world leader in all components of FPSO project execution and operations, and will provide SSP Offshore with a significant degree of technical and commercial execution experience and credibility along with reliable in-country fabrication capacity in Brazil.

In addition, this relationship provides SSP Offshore access to long-standing fabrication experience and capacity in key West African countries, which will be critical to the success of the commercialization strategy that we have been pursuing in the West African region over the past two years.

We have already established a Coordination Committee that has been tasked with identifying the particular projects to be jointly pursued under the MOU, and we anticipate that the first bids will be submitted in the upcoming quarters.”

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Source: SSP Offshore, September 14, 2012