Seatrium Responds to Empire Wind 2 Project Cancellation

Seatrium has issued an announcement confirming its contract for a 1,260MW offshore substation (OSS) platform for Empire Wind 2, valued at more than S$250 million, has been cancelled.

Seatrium was awarded two contracts from Empire Offshore Wind LLC for the engineering, procurement, construction, offshore hook-up and commissioning of two OSS platforms for the Empire Wind 1 and 2. The offshore wind farms are located about 20 miles south of Long Island east of the Rockaways.

Empire Offshore Wind LLC is a joint venture between Equinor and bp, and earlier this week, the companies terminated their agreement to sell power to New York state from the Empire Wind 2 offshore wind farm, citing rising inflation, higher borrowing costs and supply chain issues.

Construction work on the Empire Wind 2 OSS Platform was expected to commence in June 2024, with minimal engineering work performed by Seatrium to date. Seatrium said it will avail construction capacity set aside for this project to other projects in the pipeline. The contract is structured on progressive payment milestones, and payment for the work performed to date has been received, resulting in neutral project cashflow.

Construction work on the 810MW Empire Wind 1 OSS Platform commenced in 4Q 2023. Empire Offshore Wind LLC confirms the Empire Wind 1 project contract remains unaffected and continues as planned.

Seatrium said it remains committed to supporting the global energy transition and is bullish on the market opportunities for the long-term development of sustainable energy infrastructure. Among renewable energy sources, offshore wind will continue to play an important role in achieving global climate goals.

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