Seatrium Subsidiary Ordered to Pay US$108 Million in Arbitration Ruling

A unit of Seatrium, a major player in offshore and marine industries, has been directed by a tribunal under the Singapore International Arbitration Centre to pay US$108 million to MHWirth, a subsidiary of US drilling services provider HMH.

The ruling includes US$101 million in vendor termination fees and US$7 million for ancillary and legal costs.

Seatrium added: “The US$108 million is within the provision that the company has made in prior years, with the interests to be booked in FY2024.”

The arbitration, initiated in December 2021, pertained to four equipment supply contracts, with MHWirth alleging breaches by Seatrium's wholly owned subsidiary, Jurong Shipyard.