Singapore's Sembcorp Marine Ltd. announced Wednesday that its 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 $21 million. SSP Offshore is a Houston-based company that specializes 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.
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 Dec. 31.
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