- Seatrium shares drop 6.5% after contract cancellation
- Maersk cites construction delays
- Seatrium considers legal action over contract termination
- Trump administration previously halted Empire Wind project work
Oct 10 (Reuters) – Shipbuilder Seatrium (SEAT.SI) said Denmark’s Maersk (MAERSKb.CO) terminated a $475 million contract for a nearly finished offshore wind vessel that was intended to work on a project off the coast of New York.
The wind turbine installation vessel is 98.9% complete and was built to serve Equinor’s (EQNR.OL) Empire Wind, Singapore-based Seatrium said in a statement on Friday.
Get the Latest US Focused Energy News Delivered to You! It’s FREE:
Maersk confirmed the cancellation, citing construction delays, but would not say whether it had paid for the work completed.
“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,” Maersk said in an emailed statement.
Seatrium shares slid 6.5% on the Singapore stock exchange following the announcement.
The announcement is the latest sign of trouble in the U.S. offshore wind industry, which the administration of U.S. President Donald Trump has vowed to stop.
Empire Wind was embroiled in Trump’s assault on offshore wind earlier this year when his administration issued a month-long stop work order on the project.
Seatrium said it was evaluating its options for the vessel, including with Empire Wind. It also said it could take legal action over the contract termination. The company did not immediately respond to a question about whether Maersk had paid for the completed work.
Equinor said it was weighing its alternatives.
“We have been informed by Maersk of an issue concerning its contract with Seatrium related to the wind turbine installation vessel originally contracted by Empire Offshore Wind LLC for use in 2026. We are currently assessing the implications of this issue and evaluating available options.”
Reporting by Nichola Groom; Editing by Elaine Hardcastle and Nick Zieminski
Share This:
More News Articles
