The legal dispute over the cancelled contract for a wind turbine installation vessel (WTIV) ordered by Maersk Offshore Wind 2022 from Sembcorp Industries (now Sembcorp Marine) is intensifying.

Maersk Offshore Wind ordered the WTIV Sembcorp Industries (now Sembcorp Marine) in 2022 for $475m, with delivery scheduled for January 2026 for the first phase of the Empire Wind offshore wind farm off the coast of Long Island, New York. The WTIV contract was terminated by Maersk's subsidiary on9 October, with arbitration against Sembcorp Marine Energy International (SEI) filed on 21 October, and a counter-arbitration notice filed by SEI Maersk Offshore Wind's related company on 28 November.

The arbitration at the London Maritime Arbitrators Association (LLMA) is seeking the orders: a declaration that Maersk wrongfully terminated the contract; a declaration that the contract is valid and subsisting; an order that the contract is valid and binding, and buyer is to receive the vessel and pay the outstanding instalment sums by 30 January 2026, along with further/alternative damages.

“ buyer’s conduct has led SEI to believe that the buyer has clearly manifested its intention to repudiate the contract and not perform any of its contractual obligations,” Semcorp Marine said.

The dispute poses a significant risk for Sembcorp Marine as Maersk Offshore Wind has only paid 20% of the $75m purchase price of the WTIV, with the project now 98.9% complete. The contract is not milestone-based, with around 80% the contract value payable at delivery.

“Under the contract, the buyer is required to pay SEI 80% of the contract price upon delivery of the vessel. legacy contract, which predates the formation of the current Sembcorp Marine entity, is the only remaining contract in the group’s orderbook that is not based on a milestone-based payment structure,” said Singapore Shipyard Group.

The WTIV was scheduled to be deployed at the $5bn Empire Wind 1 offshore wind farm developed by Norwegian company Equinor off the coast of Long Island, New York. However, in April this year, US President Donald Trump halted construction of the Empire Wind project, though it resumed construction in late-May.