Seatrium and Maersk Settle $475M Wind Vessel Dispute

Singapore-based shipbuilder Seatrium Limited and an affiliate of Danish shipping giant Maersk have resolved a contentious contractual dispute over a nearly completed wind turbine installation vessel, the companies announced Monday, bringing an abrupt end to dual arbitration proceedings that threatened to drag on for years.

Under the settlement, Seatrium Energy (International) Pte Ltd will deliver the vessel to Maersk’s affiliate Phoenix II A/S by February 28, 2026, with the buyer paying the remaining contract balance of $360 million, subject to adjustments. The agreement marks a dramatic reversal from October, when Maersk terminated the contract and both parties initiated separate arbitration proceedings.

The resolution includes an unusual financing arrangement in which Maersk will pay $250 million of the contract price through an interest-bearing credit extended by Seatrium’s wholly-owned subsidiary, Seatrium (SG) Pte. Ltd. The credit arrangement spans up to 10 years and will be repaid through cash generated by the vessel’s operations.Seatrium will hold a mortgage over the vessel and maintain first priority rights over both the vessel and the buyer’s bank accounts as security.

“After evaluating all feasible options alongside the end-customer, the Company is of the view that the arrangement above is the optimal way forward for the interests of the Group and the Company’s shareholders, taking into consideration the relevant circumstances, including financial impact, certainty of recoverability, and the risk of lengthy and costly legal proceedings,” Seatrium stated in its announcement.

Both parties have agreed to withdraw and discontinue all legal proceedings, with the contract now in full force and effect. The matter is not expected to materially impact Seatrium’s net tangible assets or earnings per share for the current financial year ending December 31, 2025.

The dispute began when Maersk issued a termination notice on October 9, citing contract breaches. Seatrium rejected the termination three days later, arguing that Maersk was in breach. The Singapore shipbuilder then filed its own notice of arbitration on November 28, seeking a declaration that Maersk wrongfully terminated the contract and demanding specific performance of the buyer’s obligations.

The vessel, which is approximately 99.8% complete, was originally contracted in March 2022 for deployment at the Empire Wind 1 offshore wind farm project in U.S. waters. The project has faced regulatory challenges, including a temporary construction halt by the Bureau of Ocean Energy Management in April 2025, though the stop work order was later lifted.

The contract represented unusual payment terms for Seatrium, with 80% of the contract price due upon delivery rather than through progressive milestone payments. The company described it as “the only remaining contract in the Group’s order book that is not structured with progressive milestone payments,” calling it a “legacy contract pre-dating the merger of entities resulting in the formation of Seatrium.”

Seatrium expressed confidence in completing the project, stating that the company “is focused on and confident of completing the project under the Contract and delivering the Vessel in accordance with the Contract.”The company promised further announcements as material developments occur.

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