Seatrium rejects termination notice of $616m contract, receives notice of arbitration
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Seatrium also sent a notice to the buyer on Oct 20 that the vessel, which is 98.9 per cent complete, will be delivered on Jan 30, 2026.
PHOTO: MAERSK SUPPLY SERVICE
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SINGAPORE – Seatrium on Oct 22 said it has rejected a notice of termination of a US$475 million (S$616 million) contract it signed with a Maersk Offshore Wind affiliate for a vessel it has nearly completed building.
In a bourse filing, the marine engineering company added that it rejected the notice on Oct 12, noting that the Maersk affiliate was “in repudiatory breach of the contract” and it “reserved all its rights against the buyer for wrongful termination”.
The contract, signed in 2022, was for the construction of a wind turbine installation vessel at the US offshore wind farm, Empire Wind 1. Seatrium had said that it was going to “explore viable solutions”, including talks with the end-customer, Empire Offshore Wind, a joint venture between Equinor and BP.
Seatrium also sent a notice to the buyer on Oct 20 that the vessel, which is 98.9 per cent complete, will be delivered on Jan 30, 2026.
In response, it received a notice of arbitration on Oct 21, which stated that such disputes are to be referred to arbitration in London, in accordance with the current London Maritime Arbitrators Association terms.
The notice did not contain any particulars of the alleged disputes, the buyer’s claims or the reliefs sought by the buyer, said Seatrium.
It added that it is taking legal advice and will “vigorously prosecute its position and defend any claims” from the buyer.
Shares of Seatrium rose after the news, closing 1 per cent or two cents higher at $2.11 on Oct 22. THE BUSINESS TIMES
