Singapore shipyard group Seatrium has received a notice of termination of a contract for the construction of a wind turbine installation vessel for Maersk Offshore Wind, set to be deployed on Equinor’s Empire Wind project in the US.
The contract has a total value of approximately $475m. As of the date of this announcement, the project is approximately 98.9% completed.
Maersk Offshore Wind, 100% owned by A.P. Møller Holding, awarded the contract to Sembcorp Marine Rigs & Floaters, now known as Seatrium Energy International, in March 2022. The termination notice was received on Thursday, October 9.
The company stated that it would explore viable solutions, including those with the end-customer, Empire Offshore Wind LLC, an Equinor subsidiary responsible for developing the offshore wind farm.
Seatrium Energy International is currently reviewing the validity of the notice of termination, as well as certain allegations within it. The allegations have been left undisclosed at this moment.
All legal and commercial options regarding the contract are also being evaluated, including the right to contest the notice of termination and to perhaps commence legal proceedings to remedy wrongful termination.
Seatrium also advised shareholders to exercise caution when dealing with the shares or other securities of the group.
