On October 22, Singapore-based offshore shipbuilder Seatrium announced that it had received a notice of termination from an affiliate of Maersk Offshore Wind. The dispute concerns the termination of a contract for a wind turbine installation vessel nearing completion.
The Notice of Termination was issued in relation to the contract (the “Contract”) for the construction of a Wind Turbine Installation Vessel (“WTIV” or the “Vessel”) for Maersk Offshore Wind (“Maersk”) through its affiliate (the “Buyer”), intended for deployment at the U.S. offshore wind project, Empire Wind 1.
This arbitration notice stems from the order cancellation incident that sparked controversy earlier this month. On October 10, Seatrium announced it had received a notice of termination for the wind turbine installation vessel order from an affiliate of Maersk Offshore Wind. At the time of the cancellation announcement, the vessel’s construction progress had reached approximately 98.9%.
On 12 October 2025, SEI responded to the Buyer rejecting the Notice of Termination and reserving all rights and remedies against the Buyer. SEI 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 2025, SEI gave notice to the Buyer in accordance with the Contract that the Vessel would be delivered by 30 January 2026.
The Company wishes to update that it has received a notice of arbitration (the “Notice of Arbitration”) from the Buyer on 21 October 2025, just one day after SEI gave notice to the Buyer that the Vessel would be delivered by 30 January 2026. The Notice of Arbitration asserts that disputes have arisen between the parties to the Contract, and that such disputes are to be referred to arbitration in London to be conducted in accordance with the current London Maritime Arbitrators Association (LMAA) terms. The Notice of Arbitration does not contain any particulars of the alleged disputes or the Buyer’s claims or the reliefs (monetary or otherwise) being sought by the Buyer.
SEI is taking legal advice and will vigorously prosecute its position and defend any claims that may be brought by the Buyer.
Seatrium stated in its latest announcement on the 22nd that 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.
On March 23, 2022, Sembcorp Marine Rigs & Floaters, the predecessor of SEI, signed a construction contract worth approximately US$475 million with an affiliate of Maersk Offshore Wind for the wind turbine installation vessel involved in this order cancellation. The vessel was planned for deployment in U.S. offshore wind projects upon completion.
Construction commenced in the fourth quarter of 2022, with the vessel scheduled for launch in the second quarter of 2025. Under the original contract, delivery was planned for early 2025. However, based on information disclosed in the announcement, it remains uncertain whether this high-value offshore vessel will ultimately be delivered.