Seatrium has received a notice of termination from Maersk Offshore Wind for the contract to build a wind turbine installation vessel that was intended for deployment at Equinor’s 810MW Empire Wind 1 offshore project.
The contract, valued at approximately US$475m, was secured by Seatrium Energy (International) – formerly Sembcorp Marine Rigs & Floaters – a subsidiary of the group.
According to the company, the vessel is about 98.9% complete.
Seatrium said it will explore viable solutions, including discussions with the end customer, Empire Offshore Wind LLC.
The company added that its subsidiary is reviewing the validity of the termination notice and the allegations contained within it, and is assessing its legal and commercial options.
These include contesting the notice and pursuing remedies for what it considers a possible wrongful termination.
Seatrium stated it will issue further announcements if there are any material developments and advised shareholders to exercise caution when trading in its securities.
Maersk Offshore Wind confirmed it had issued the termination.
“Maersk Offshore Wind can confirm that it has terminated its newbuilding contract with Seatrium Energy (International) Pte. Ltd. (formerly Sembcorp Marine Rigs & Floaters Pte. Ltd.) in Singapore for the construction of a Wind Installation Vessel due to delays and related construction issues,” it said.
“Maersk Offshore Wind has no further comments at this time.”