Seatrium and Maersk Offshore Wind affiliate Phoenix II have resolved their arbitration and reached an agreement for the delivery of a newbuild wind turbine installation vessel (WTIV).

Delivery and Payment Terms

The Singapore-based yard will deliver the vessel by 28 February 2026. Upon delivery, Phoenix II will pay a balance of US$360 million. A portion of this, US$250 million, will be paid under an interest-bearing credit arrangement of up to 10 years, repayable from the cash generated by the WTIV. Seatrium will secure this arrangement with a mortgage and first priority rights over the vessel and the buyer's bank accounts.

Background of the Dispute

The agreement follows a period of conflict. On 9 October, Phoenix II issued a termination notice, citing delays and construction issues, when the vessel was approximately 98.9% complete. Seatrium rejected this termination on 12 October, set a delivery date of 30 January of the following year, and explored options including direct delivery to the end-customer, Empire Offshore Wind. Arbitration proceedings were initiated by Maersk on 22 October and by Seatrium on 29 November.

Resolution and Current Status

All legal proceedings, including the arbitrations, will be withdrawn. Seatrium stated this arrangement is optimal, considering financial impact, recoverability certainty, and the risks of lengthy legal proceedings. The company is focused on completing the project, and the vessel was approximately 99.8% complete as of the announcement date. Maersk Offshore Wind confirmed the agreement, noting the focus is now on start-up activities for the vessel's charter with Equinor on the Empire Wind I project. Following the announcement, Seatrium's share price rose 2.90%.