Seatrium Launches Arbitration Against Maersk Affiliate Over Terminated $475 Million Wind Vessel Contract

Singapore-based Seatrium Limited has escalated its legal battle with Maersk Offshore Wind by filing a notice of arbitration against the Danish shipping giant’s affiliate, Phoenix II A/S, marking the latest development in a contentious dispute over a nearly completed wind turbine installation vessel.

On November 28, Seatrium Energy (International) Pte Ltd issued the notice of arbitration in accordance with London Maritime Arbitrators Association terms, seeking a declaration that Maersk wrongfully terminated the $475 million contract on October 9, 2025.The Singapore shipbuilder is also demanding specific performance of the buyer’s obligations, including taking delivery of the vessel on January 30, 2026, and paying the delivery installment due under the contract.

“SEI is seeking, amongst other things… a declaration that the Contract is valid and subsisting,” the company stated in its announcement, adding that it would pursue “further and/or in the alternative, damages to be assessed.”

The wind turbine installation vessel, which is approximately 98.9% complete, was originally contracted in March 2022 for deployment at the Empire Wind 1 offshore wind farm project in U.S. waters.The vessel was custom designed to use feeder vessels to supply components, a method Maersk Supply Service said would be 30% more efficient than using conventional jack-up vessels.

The dispute has unfolded rapidly over the past two months. After receiving Maersk’s termination notice on October 9, Seatrium rejected it on October 12, arguing that “the Buyer is in repudiatory breach of the Contract” and reserving “all its rights against the Buyer for wrongful termination.” Just one day after Seatrium gave notice that the vessel would be delivered by January 30, 2026, Maersk filed its own notice of arbitration on October 21, though it did not specify any particular claims or relief sought.

The financial stakes are substantial. Under the contract, 80% of the contract price is to be paid by the buyer to Seatrium on delivery of the vessel. The company noted this is “the only remaining contract in the Group’s order book that is not structured with progressive milestone payments,” describing it as a “legacy contract pre-dating the merger of entities resulting in the formation of Seatrium.”

The termination comes amid significant challenges for the Empire Wind project, which has faced regulatory hurdles. In April 2025, the Bureau of Ocean Energy Management temporarily halted construction activities on Empire Wind 1, though 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.

Seatrium stated it had explored “all viable solutions, including with the end-customer, Empire Offshore Wind LLC, to deliver the Vessel directly” while continuing construction efforts. The company cautioned that “the financial impact arising from the SEI Notice of Arbitration in view of this developing situation is highly dependent on the final outcome,” and promised to provide updates in accordance with listing rules when it has more visibility on the outcome.

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

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