Singapore-based shipbuilder Seatrium announced on Monday that it has reached a settlement agreement with Denmark’s Maersk concerning the delivery of an offshore wind installation vessel originally intended for a project off the coast of New York.
Seatrium said Maersk had terminated the contract on October 10, citing construction delays. At the time, the company did not disclose whether Maersk had made payments for the work completed on the vessel.
Under the settlement reached on Monday, Maersk will pay the remaining balance of USD 360 million out of the total contract value of USD 475 million. Of this amount, approximately USD 250 million will be settled through an interest-bearing credit arrangement with a tenor of up to 10 years, to be repaid from cash flows generated by the vessel.
Both parties have agreed to withdraw and discontinue all legal proceedings, describing the settlement as the “optimal way forward,” taking into account financial implications and the risks associated with prolonged and costly litigation.
Seatrium added that as of December 22, construction of the offshore wind vessel is around 99.8 per cent complete.