Seatrium and Aibel have filed arbitration proceedings in connection with a partnership to deliver the 900MW DolWin5 platform in the German North Sea.
The Singapore fabricator said both companies have filed cases with the Arbitration Institute of the Stockholm Chamber of Commerce.
Seatrium added the proceedings arise from “differences” between both companies under a consortium agreement.
It said there was a “failure to achieve timely design freeze with multiple changes” to the platform.
“Parties are asserting claims against each other under the Consortium Agreement for breaches relating to direct scopes of work and in respect of disagreements relating to the allocation of scope of responsibilities of the parties,” the company stated.
“Parties are also disputing the distribution of revenue and costs incurred relating to the joint scope of the Project.
“In respect of direct scopes of work, SNE and Aibel have made demands against each other for sums in the region of EUR180 million and EUR113 million respectively.”
Seatrium said it is contesting the claims.
“As the arbitration proceedings are at a preliminary stage, the Company is unable to definitively ascertain the financial impact, if any, arising from the arbitration proceedings. The financial impact will also be dependent on the final outcome of the arbitration proceedings.”
Aibel said the two companies “experienced challenges and disagreements in how responsibilities and expenses were shared during the joint delivery”.
Aibel’s claims are based on additional work and costs incurred by it in order to complete the project in line with the customer’s requirements, a statement added.
“As the dispute has reached a deadlock at the consortium level, the matter now moves into formal arbitration. This is a standard and contractually defined mechanism for resolving disagreements between the partners.
“Aibel will continue to follow the established procedures and will address the claims through the arbitration process. Aibel remains committed to the DolWin 5 project and to supporting its progress toward final completion.”
TenneT’s DolWin5 is located in the German North Sea. It was installed last year after a 12-month delay, and is expected to become operational shortly.