Singapore’s Seatrium has received a notice of arbitration from Maersk Offshore Wind’s affiliate, regarding the dispute over the termination of a $475 million contract for a nearly completed wind turbine installation vessel (WTIV) originally intended for Equinor’s Empire Wind 1 project in the United States.
The arbitration notice, received on October 21, comes just one day after Seatrium Energy (International) (SEI), a subsidiary of Seatrium, informed the buyer that the vessel would be ready for delivery by January 30, 2026.
According to Seatrium, the arbitration will be conducted in London under the London Maritime Arbitrators Association (LMAA) terms, noting also that the notice did not specify the particulars of the alleged disputes, claims, or relief - monetary or otherwise - sought by the buyer.
The dispute stems from Maersk Offshore Wind’s termination of the WTIV contract on October 9, which Seatrium rejected on October 23, stating the buyer is in ‘repudiatory breach’ of the agreement.
SEI said it is taking legal advice, and will vigorously prosecute its position and defend any claims that may arise.
The contract, originally awarded in 2022 to then-Sembcorp Marine Rigs & Floaters, now known as SEI, covered the construction of the $475 million WTIV, which was reportedly 98.9% complete at the time of termination.
“The company will make further announcements as and when there are material developments. The financial impact arising from this developing situation is highly dependent on the final outcome. The group is committed to offer market guidance when it has reliable visibility on the final outcome in order to provide accurate financial guidance that investors and shareholders can rely on,” Seatrium said.