Maersk Offshore Wind Takes Seatrium to Arbitration Over Nearly Completed Wind Installation Vessel

Seatrium Limited announced it received a notice of arbitration from Maersk Offshore Wind over a dispute regarding the termination of a contract for a nearly completed wind turbine installation vessel.

The notice comes just one day after the Singapore-based shipbuilder notified Maersk Offshore Wind that the nearly completed wind turbine installation vessel would be delivered by January 30, 2026.

The notice of arbitration asserts that disputes have arisen between the parties regarding the $475 million contract for the construction of a wind turbine installation vessel intended for deployment at the Empire Wind 1 offshore wind project off New York. The arbitration will be conducted in London in accordance with the current London Maritime Arbitrators Association terms.

According to Seatrium’s announcement, “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.”

The arbitration notice follows a contentious sequence of events that began earlier this month when Seatrium Energy (International) Pte Ltd received a notice of termination from Maersk. The vessel, which is approximately 98.9% complete, was originally contracted in March 2022.

Seatrium subsequently rejected the termination notice, stating that “the Buyer is in repudiatory breach of the Contract” and reserving “all its rights against the Buyer for wrongful termination.” The company then gave notice on October 20 that the vessel would be delivered by January 30, 2026.

In its statement, Seatrium said that “SEI is taking legal advice and will vigorously prosecute its position and defend any claims that may be brought by the Buyer.” The company added that it “will make further announcements as and when there are material developments” and that “the financial impact arising from this developing situation is highly dependent on the final outcome.”

The termination comes amid significant challenges for the Empire Wind project, which has faced regulatory hurdles under the Trump administration. In April 2025, the Bureau of Ocean Energy Management temporarily halted construction activities on Empire Wind 1 before the stop work order was later lifted on May 19.

The $5 billion Empire Wind 1 project is designed to power 500,000 New York homes by 2027 and is currently reported to be more than 30% complete. However, broader challenges for U.S. offshore wind have emerged, with the cancellation of more than $679 million worth of Department of Transportation financing for ports to support offshore wind projects.

The vessel was custom designed to use feeder vessels to supply components, a method that Maersk Supply Service said would be 30% more efficient than using conventional jack-up vessels. The contract, valued at approximately S$610 million, was originally awarded to Sembcorp Marine Rigs & Floaters Pte Ltd, now known as Seatrium Energy (International) Pte Ltd.

Seatrium advised shareholders to “exercise caution when dealing with the shares or other securities of the Group” and promised further announcements regarding any material developments.

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 107,232 members