Seatrium and Maersk Offshore Wind resolve WTIV delivery dispute

Singapore-headquartered Seatrium Limited reported today that its Seatrium Energy (International) Pte Ltd unit (SEI) and Maersk Offshore Wind affiliate Phoenix II A/S have resolved a dispute that began back in October when Maersk Offshore Wind canceled the contract for a Wind Turbine Installation Vessel (WTIV) ordered March 2022 for deployment at the Empire Wind 1 offshore wind farm.

Seatrium says that SEI and the buyer have reached an agreement for SEI to deliver the WTIV and for the buyer to take delivery of it by February 28, 2026. On delivery, the buyer will pay the $360 million balance of the contract price.

The parties have mutually agreed for the buyer to pay $250 million of the contract using an interest-bearing credit arrangement extended by the Seatrium’s wholly-owned subsidiary, Seatrium (SG) Pte. Ltd. (SGS). The credit arrangement is for up to 10 years and repayable through cash generated by the vessel. SGS will have a mortgage over the WTIV, as well as first priority rights over the Vessel and the buyer’s bank accounts.

“In light of the above, the parties will withdraw and discontinue all legal proceedings (i.e. Maersk’s arbitration and SEI’s arbitration), and the contract is in full force and effect,” says Seatrium,, adding that “collaborative efforts were advanced by the willingness of all parties critical to the vessel’s operability to be practical, find alignment, and work collectively towards the target of the delivery of the vessel.”

The post Seatrium and Maersk Offshore Wind resolve WTIV delivery dispute appeared first on Marine Log.