Singapore-based Seatrium Limited and Phoenix II A/S, an affiliate of Maersk Offshore Wind, have settled their dispute over a Wind Turbine Installation Vessel (WTIV) ordered at Seatrium by Maersk, with Maersk agreeing to accept the delivery of the vessel next year.
Back in early October, Maersk terminated the USD 475 million (approximately EUR 409 million) shipbuilding contract for the WTIV intended to be deployed at the Empire Wind 1 offshore wind farm in the United States.
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Seatrium subsequently rejected the termination on 12 October, accusing the buyer of repudiatory breach and reserving all rights. The company said at the time that it had continued exploring options to complete and potentially deliver the vessel directly to the end customer, Empire Offshore Wind LLC.
Maersk Offshore Wind followed up with a notice of arbitration on 21 October, issued one day after SEI told the buyer it intended to deliver the WTIV by 30 January. According to Seatrium, Maersk’s arbitration notice did not specify the nature of its claims.
Seatrium responded by also requesting arbitration proceedings in late November.
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As a result of these proceedings, Seatrium and Phoenix II A/S have come to an agreement that Seatrium will deliver the vessel to Phoenix II A/S by 28 February 2026.
Upon delivery of the vessel, Phoenix II A/S agreed to pay the balance of the contract price being the sum of USD 360 million, subject to adjustments in accordance with the contract.
The companies have also mutually agreed for Phoenix II A/S to pay part of the contract price to the tune of USD 250 million using an interest-bearing credit arrangement extended to Phoenix II A/S by Seatrium’s wholly-owned subsidiary, Seatrium (SG) Pte. Ltd. (SGS). The credit arrangement is for up to ten years and repayable through cash generated by the vessel. SGS will have a mortgage over the vessel, as well as first priority rights over the vessel and Phoenix II A/S’s bank accounts.
Following the resolution of the dispute, the parties will withdraw and discontinue all legal proceedings, and the contract is in full force and effect.
According to Seatrium, the project is 99.8% completed as of 22 December 2025.