Seatrium Initiates Arbitration Against Aibel Over DolWin 5 Disputes
Singapore’s Seatrium has officially launched arbitration proceedings against its partner, Aibel, concerning their contract for the DolWin 5 offshore converter platform project. This 900MW installation, situated in the German North Sea and developed for TenneT, has become a focal point of contention due to disputes over design changes and financial claims. The ongoing arbitration highlights the complexities of collaboration in large-scale energy projects.
Contractual Disputes Emerge Amid Ongoing Project Work
The DolWin 5 project was initially awarded to a consortium comprising Aibel and Keppel Offshore and Marine back in 2019, prior to the formation of Seatrium through the merger of Keppel O&M and Sembcorp Marine. Under the original agreement, Keppel O&M’s share was valued at approximately $560 million. The platform’s construction commenced in Singapore before it was transported to Aibel’s facility in Haugesund for additional work, which took place in October 2023.
Despite Seatrium’s assertion that it has met its obligations, the company states that Aibel has made numerous design modifications to the DolWin 5 platform. This situation has led to both companies filing claims against one another based on the consortium agreement. Seatrium is pursuing €180 million, citing discrepancies in revenue and cost sharing, while Aibel is countering with a claim of €113 million.
Seatrium clarified that these arbitration requests arise from fundamental disagreements regarding the responsibilities outlined in their consortium agreement. Both parties have expressed a desire to resolve these issues amicably through an independent tribunal. As the arbitration is currently in its early stages, Seatrium has indicated that the financial implications remain uncertain and will depend heavily on the arbitration’s outcome.
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Future Outlook and Project Timeline
Despite the initiation of arbitration proceedings, work on the DolWin 5 project continues, with delivery anticipated by 2026. The platform is presently located in the North Sea, and both Seatrium and Aibel are actively engaged in its development. As the situation evolves, stakeholders are keenly observing how the arbitration might influence project timelines and financial arrangements. Seatrium is also seeking clarity on the obligations and liabilities of both parties as they navigate these disputes.
