Seatrium Considers Legal Action After Maersk Terminates Order for WTIV

Singapore shipyard group Seatrium has been hit with a surprising contract termination notice for Maersk Offshore Wind's nearly completed wind turbine installation vessel. The companies had been hailing the vessel, which uses an innovative design, reporting that it is nearly 99 percent complete.

Seatrium announced that it had received a notice of termination on October 9 from Maersk Offshore Wind, nearly three and a half years after the vessel was contracted. It said the contract is valued at approximately $475 million and that it would be reviewing the terms of the contract and “allegations” in the notice of termination.

Maersk terminated the contract five months after celebrating the float out of the vessel at Seatrium yard in Singapore. The vessel, which is approximately 475 feet (145 meters) in length, was floated from the building dock and repositioned to the outfitting berth in May, where it was being prepared for its crane installation. Last month, Maersk Offshore Wind released photos showing the vessel in its jack-up position and reported the “pioneering locking system” had been installed.

The vessel has been described as futuristic with capabilities to meet the needs of the U.S. offshore wind industry, including handling the largest offshore wind turbines and improving installation efficiency by up to 30 percent. It is designed to “dock” feeder barges carrying equipment from the staging sites and ensure stability during the loading using the locking system.

Vessel with its locking system installed (Maersk Offshore Wind)

Maersk Offshore Wind has also partnered with Edison Chouest Offshore for the construction of a purpose-built windfarm feeder spread, specifically designed for pairing with the Maersk Wind Installation Vessel. This custom-built feeder spread includes two tugs and two barges, both U.S.-flagged, that will be owned and operated by Edison Chouest and constructed by Bollinger Shipyards.

The vessel is under contract to Equinor to deploy at the Empire Wind offshore wind farm. The project, which is located 15 to 30 miles south of Long Island, New York, started offshore work in May after resolving a stop work order from the Trump administration. The installation calls for 54 15MW turbines and was due to start in 2026, with first power before the end of the year, and completion in 2027.

“Seatrium is currently reviewing the validity of the notice of termination, as well as the allegations set out therein. Seatrium is also evaluating its legal and commercial options in respect of the contract, including the right to contest the notice of termination, and/or to commence legal proceedings to seek all available remedies for wrongful termination,” the company said in a notice of the termination.

Seatrium said it now intends to “explore viable solutions,” including raising the matter with the end-customer, Empire Offshore Wind.