Seatrium initiates arbitration proceedings after a 600 million yuan contract was terminated by a Maersk affiliated company | Lianhe Zaobao
Seatrium has officially initiated arbitration proceedings due to Maersk's termination of a contract valued at approximately SGD 617 million. Seatrium Energy (International) has issued an arbitration notice to the buyer, requesting a declaration of the contract's validity and the fulfillment of contractual obligations, or an assessment of damages. Seatrium rejected the termination notice, stating that the buyer has committed a fundamental breach
Seatrium has formally issued an arbitration notice to Maersk's affiliated company regarding the termination of a contract valued at USD 475 million (approximately SGD 617 million) and specified its demands to initiate arbitration proceedings.
Seatrium announced late Saturday (November 29) that its subsidiary Seatrium Energy (International) sent an arbitration notice to the buyer, Maersk Offshore Wind, on Friday (28th) in accordance with the current London Maritime Arbitrators Association (LMAA) terms, officially starting the arbitration process.
Seatrium Energy seeks demands including: a declaration that the buyer wrongfully terminated the contract on October 9, 2025, a declaration that the contract is valid and ongoing, the buyer must fulfill contractual obligations, including accepting the vessel by January 30, 2026, and paying the contractually stipulated delivery installment (80%), or alternatively, requesting an assessment of damages.
On October 12, Seatrium Energy rejected the termination notice from Maersk Offshore Wind and responded by reserving all rights and remedies against the buyer, also pointing out that the buyer had committed a fundamental breach, thus reserving the right to exercise all rights against the improper termination of the contract.
When Seatrium received the termination notice from Maersk Offshore Wind, the offshore wind installation vessel project under construction was 98.9% complete, with Seatrium bearing most of the construction costs but only receiving 20% of the payments.
Further Reading
Seatrium signs memorandum with India's largest shipbuilder to strengthen offshore business cooperation Maersk requests contract termination, Seatrium will still complete and deliver on schedule Seatrium Energy continued to reject the arbitration notice issued by Maersk Offshore Wind on October 21. Just one day prior, Seatrium Energy had notified the other party that it expected to deliver the vessel by January 30, 2026.
The arbitration notice issued by Maersk Offshore Wind states that disputes between the two parties will be submitted to London arbitration, in accordance with the current terms of the London Maritime Arbitrators Association, but it does not specify the details of the dispute, the rights it claims, or the buyer's demands, including monetary or other forms.
The contract in dispute is the only remaining contract of Seatrium that does not adopt a progressive payment structure. Such contracts divide the payment for the entire project into multiple stages, with the buyer paying a corresponding portion upon reaching a specific project milestone, ensuring that both parties have clear objectives and progress while reducing risks for both sides.
Seatrium Energy pointed out that the financial impact triggered by the arbitration notice will highly depend on the final arbitration outcome.
Seatrium's stock price rose 0.47% to 2.15 yuan at Friday's close
