Seatrium has issued a notice of arbitration against an affiliate of Maersk Offshore Wind, escalating a dispute over the termination of a contract for a wind turbine installation vessel (WTIV) intended for the Empire Wind 1 project in the United States.
The move follows a notice of arbitration delivered by the buyer on October 21, one day after Seatrium notified the buyer that the vessel would be ready for delivery by January 30, 2026. The dispute will be heard in London under the current terms of the London Maritime Arbitrators Association (LMAA).
Seatrium Energy (International) had earlier rejected the buyer’s October 9 termination notice for the $475 million WTIV, asserting that the buyer was in repudiatory breach of contract. The company said it continued exploring potential solutions, including direct delivery of the vessel to the end customer, Empire Offshore Wind.
The buyer’s arbitration notice, field agains Phoenix II A/S, did not specify the particulars of its claims or the relief sought.
In its own filing on 28 November, Seatrium said it is seeking a declaration that the buyer wrongfully terminated the contract, confirmation that the contract remains valid, an order for specific performance requiring the buyer to take delivery of the vessel and pay the delivery instalment, and, in the alternative, damages to be assessed.
Under the contract, 80% of the contract price is payable on delivery. The agreement is a legacy pre-merger contract and the only remaining one in Seatrium’s order book that does not include progressive milestone payments.
The company said the financial impact of the arbitration will depend on its final outcome and will provide updates in line with listing rules.