Seatrium has initiated arbitration proceedings against Phoenix II, a Maersk affiliate, following the client's cancellation of a US$475 million contract for a newbuild wind turbine installation vessel (WTIV) intended for the Empire Wind I project. The cancellation occurred on 9 October, despite the vessel being 99% complete.

Arbitration Proceedings and Claims

Seatrium filed a notice of arbitration on 28 November under London Maritime Arbitrators Association terms. The company seeks a declaration that the buyer wrongfully terminated the contract and that the contract remains valid. It also requests an order for specific performance, compelling the buyer to take delivery of the vessel by 30 January 2026 and pay the delivery instalment, or alternatively, pay damages to be assessed.

Contractual and Financial Details

The contract, a legacy agreement predating Seatrium's formation, required the buyer to pay 80% of the price (US$380 million) upon vessel delivery. This contract is unique within Seatrium's order book as it is not structured with progressive milestone payments.

Events Following Termination

Seatrium rejected the termination notice on 12 October, asserting the buyer was in repudiatory breach and reserving all rights. On 20 October, Seatrium notified the buyer of the planned 30 January delivery date and explored solutions, including direct delivery to the end-customer, Empire Offshore Wind LLC. The following day, the Maersk affiliate issued its own arbitration notice, though it did not specify the disputes or claims.

Current Stances and Financial Impact

Seatrium, after taking legal advice, intends to vigorously defend its position, stating the buyer's conduct shows an intention to abandon the contract. Maersk Offshore Wind declined to comment on the confidential matter. Seatrium cautioned that the financial impact of the arbitration is highly dependent on the final outcome and will provide updates on material developments.