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Singapore shipyard group Seatrium has filed arbitration proceedings against its project partner Aibel over their agreement for the DolWin 5 project, a 900MW offshore converter platform in the German North Sea being built for TenneT.
The contract for the platform was secured back in 2019 by Aibel and Keppel Offshore and Marine, before it formed Seatrium with Sembcorp Marine.
Keppel O&M stated at the time that its share of the contract for the 900MW offshore converter platform was $560m.
It was agreed that the platform would first be built in Singapore and then shipped to the Aibel facility in Haugesund for further works, which took place in October 2023.
Seatrium claimed on Thursday that it had fulfilled its job scope despite Aibel’s multiple design changes of the DolWin5 platform.
The platform is currently in Germany’s North Sea, and notwithstanding the commencement of proceedings, parties are continuing to work on the project with delivery targeted in 2026.
The two companies are asserting claims against each other under the consortium agreement for breaches regarding direct scopes of work and in respect of disagreements relating to the allocation of the scope of responsibilities of the parties.
Seatrium is claiming €180m over differences in revenue and cost distribution, while Aibel is in turn filing for €113m.
“The requests for arbitration arise out of differences between the parties under the consortium agreement, and the mutual desire for those differences to be amicably resolved by an independent tribunal,” Seatrium explained.
The company added that it is “contesting the validity and substantiation of these claims and in turn is seeking declarations to clarify the parties’ obligations and liabilities” under the consortium agreement.
As the arbitration proceedings are at a preliminary stage, Seatrium said that it was unable to definitively ascertain the financial impact, if any, arising from the arbitration proceedings. The financial impact will be dependent on the outcome of the arbitration proceedings.