Seatrium, Maersk Reach Financial Settlement, Avoid Lengthy Legal Battle Over Offshore Wind Project

Singapore-based shipbuilder Seatrium announced on Monday that it has reached a financial settlement with Denmark's shipping giant Maersk, ending a months-long dispute over an offshore wind installation vessel intended for a renewable energy project off the coast of New York.

The deal comes after Maersk terminated the contract on October 10, citing construction delays, without initially clarifying whether Seatrium would be compensated for work already completed.

Under the terms of the settlement, Maersk will pay the remaining $360 million of the $475 million contract, EconomicTimes reported.

Of this amount, about $250 million will be structured as an interest-bearing credit arrangement lasting up to 10 years.

Seatrium explained that this portion will be repaid using cash flows generated by the vessel once it becomes operational, allowing financial recovery to align with the vessel's performance.

Both Seatrium and Maersk have also agreed to withdraw and discontinue all ongoing legal proceedings.

The companies called this step the "optimal way forward," taking into consideration the potential financial impact, risks, and delays that could result from prolonged litigation.

Seatrium-Maersk Deal Paves Way for Expansion

The agreement allows both parties to focus on their core business activities without the uncertainty of legal battles.

According to Reuters, Seatrium confirmed that as of December 22, the offshore wind vessel project is approximately 99.8% complete.

The near-completion of the vessel underscores just how important this settlement is, allowing Seatrium to finish construction and explore future commercial opportunities for the asset.

"This settlement gives both sides clarity and certainty, and it helps support the ongoing development of offshore wind infrastructure," a Seatrium spokesperson said, highlighting the value of collaboration in the growing renewable energy sector.

The vessel is specifically designed to support offshore wind projects along the U.S. coast, and once completed, it is expected to play a key role in expanding clean energy infrastructure.

Industry experts note that the agreement not only strengthens Seatrium's standing in the renewable energy maritime sector but also gives Maersk a clear path to move forward with its offshore wind initiatives.

Originally published on vcpost.com