Maersk Offshore Wind Invokes Arbitration in WTIV Dispute with Seatrium
The dispute over the nearly completed construction of an innovative wind turbine installation vessel is heading to arbitration, Singapore-based Seatrium reports. The shipbuilder rejected a notice of termination it received from Maersk Offshore Wind two weeks ago, reporting that the vessel would be delivered within approximately 90 days.
Seatrium reports it received the notice of arbitration the day after it informed Maersk Offshore Wind that the vessel would be delivered by January 30, 2026. The shipbuilder had previously said the ship was more than 98 percent complete. The 475-foot long ship was launched in May, and recently, Maersk highlighted that the locking system for the feeder barges had been installed and was being tested. Pictures showed the vessel in its jack-up position.
According to the statement, the notice of arbitration “asserts that disputes have arisen” between Maersk and Seatrium. The shipbuilder, however, says the notice “does not contain any particulars of the alleged disputes.”
The construction contract is reported to be valued at $475 million. It was ordered in 2022 by the then Maersk Supply Services for its entry into the offshore wind sector. The company was later acquired by AP Moller Holdings and restructured as Maersk Offshore Wind to focus on the market and selling off other functions.
The vessel was designed for the U.S. installation market with a unique locking system for barges that would be ferrying components from staging points on shore. As a foreign-built vessel, the WTIV will not be Jones Act-qualified, meaning the barge system is required to move materials to the ship. Maersk Offshore Wind and Edison Chouest Offshore announced a partnership to build and operate the barges and tugs for the feeder service.
The WTIV is under contract to Equinor for the installation at the Empire Wind 1 wind farm off New York. Offshore work is already underway at the site, and installation of the monopiles and turbines is due to get underway. Seatrium, in an earlier statement, said it would be discussing the situation with Empire Wind, which would be left without an installation vessel.
Seatrum says it will “vigorously prosecute” and defend against claims that might be brought by Maersk Offshore Wind. They have said they were reserving all rights against the buyer of the vessel for wrongful termination. Seatrium asserts that the buyer is in “repudiatory breach” of the contract. It continues to reject the notice of termination.
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