Singapore-based Seatrium has announced that its wholly-owned subsidiary, Seatrium New Energy, and its consortium partner Aibel have filed arbitration proceedings regarding the DolWin 5 project.
The legal action follows disputes concerning the design, engineering, and construction of a 900MW offshore converter platform destined for the German sector of the North Sea.
The project, for which TenneT Offshore is the end-customer, is governed by a consortium agreement signed on May 03, 2019. According to Seatrium, the platform is currently located in the North Sea.
Despite the commencement of legal proceedings, the company remarked that the parties are continuing to work on the project, with delivery targeted in 2026.
Seatrium reported that the requests for arbitration were filed with the Arbitration Institute of the Stockholm Chamber of Commerce. The company said the legal filings arose from a, “mutual desire for those differences to be amicably resolved by an independent tribunal.”
The disputes involve alleged breaches regarding direct scopes of work and disagreements over the distribution of revenue and costs relating to the joint scope of the project.
According to Seatrium, Aibel failed to achieve a timely design freeze, which resulted in multiple design changes. Seatrium New Energy fulfilled its direct scope in Singapore before the DolWin 5 sailed to Aibel’s facility in October 2023 for the Haugesund phase of works.
The company stated that the parties previously agreed Aibel would be responsible for completing works within Seatrium’s scope that were left unfinished due to the design delays.
Financial claims have been asserted by both parties, with Seatrium New Energy and Aibel making demands for approximately €180 million ($196 million) and €113 million respectively. Seatrium stated that based on preliminary advice, valid claims should be satisfied from reserved consortium funds limited to approximately €5 million.
Additionally, Aibel has claimed approximately €17 million for matters it considers part of the joint scope. Seatrium stated it is contesting the validity of these claims and intends to, “prosecute and protect its position.”
The company noted that as the proceedings are at a preliminary stage, it is unable to definitively ascertain the final financial impact. Seatrium said it will provide further updates as material developments occur.
