At the end of November, Seatrium of Singapore filed for arbitration against Maersk Offshore Wind as their dispute over the delivery of a USD475 million wind turbine installation vessel (WTIV) escalates.
As reported by HLFPI in mid-October Maersk terminated its contract with Seatrium for delivery of the WTIV that is intended to be deployed on the Empire Wind project being developed by Equinor off New York. Seatrium rejected the cancellation and reiterated its intention to deliver the vessel. Both parties have filed for arbitration under London Maritime Arbitrators Association terms.
“Maersk Offshore Wind can confirm that it has terminated its newbuilding contract with Seatrium Energy (International) Pte. Ltd… in Singapore for the construction of a wind installation vessel due to delays and related construction issues,” Maersk said in a written statement to HLFPI, adding that it “has no further comments at this time.”
In its November 29 press release Seatrium noted that on October 12, “Seatrium Energy International [SEI] responded to the buyer [Maersk] rejecting the Notice of Termination and reserving all rights and remedies against the buyer”.
Seatrium also pointed out in its response that “the buyer is in repudiatory breach of the contract and SEI reserved all its rights against the buyer for wrongful termination. Further, on 20 October, SEI gave notice to the buyer in accordance with the contract that the vessel would be delivered by 30 January 2026. In parallel, SEI continued with its efforts to explore all viable solutions, including with the end-customer, Empire Offshore Wind, to deliver the vessel directly.”
For its part, Equinor remains circumspect. In a written statement the company told HLFPI that “we have been informed by Maersk of an issue concerning its contract with Seatrium related to the wind turbine installation vessel originally contracted by Empire Offshore Wind for use in 2026. We are currently assessing the implications of this issue and evaluating available options.”
It might seem that the developer taking direct delivery of the WTIV could be a simple resolution, but there remains the matter of the bill, and of the two tug-barge sets being built by Bollinger in the USA to shuttle turbine components from the marshalling port in Brooklyn, New York, to the WTIV.
Under the contract, 80 percent of the cost of the vessel is to be paid by Maersk to Seatrium on the delivery of the vessel. Maersk was to be the owner and operator of the WTIV and also of the two shuttle barge sets. The entire five-vessel fleet is a set designed by Maersk so that the barges lock into the WTIV, obviating the need for dynamic stabilisation during transfer of components. The tug-barge sets are scheduled to be delivered in the second quarter of 2026. Bollinger did not reply to inquiries, and Maersk did not comment on the barge sets.
In its notice of arbitration Seatrium stated it seeks “a declaration that the buyer has wrongfully terminated the contract; that the contract is valid and subsisting; an order for specific performance of buyer’s obligations under the contract, including to take delivery of the Vessel on 30 January 2026 and to pay the delivery instalment due under the contract; and further and/or in the alternative, damages to be assessed.”
