Malaysian offshore contractor Sapura Energy Berhad and its subsidiary Sapura Offshore Sdn Bhd have received US$54 million (equivalent to about 3 yuan) from Yunneng Wind Power***, the developer of the Yunlin offshore wind project in Taiwan Province of China$8.8 billion) arbitration claim alleging breach of contract.
Sapura won the contract for monopile transportation and installation at the Yunlin Offshore Wind Farm in March 2019 and terminated the contract in February 2022 on the grounds that technical and operational issues had not been resolved. Following the notice of termination, Sapura Energy stated that it would pursue its claim through a contractually provided dispute resolution procedure (i.e., arbitration before the German Arbitration Institute in Bremen, Germany).
However, Yunneng Wind Power*** alleged certain breaches of the contract terminated by Sapura and filed an interim claim of €50 million (US$54.2 million). The company alleges that Sapura did not adhere to the contractually agreed timeline and did not deploy the relevant installation vessels required for the installation of certain structures on time.
At present, Sapura and its subsidiaries are seeking legal advice on the strength and legal basis of the claims brought by Yunneng Wind Power***. The Company has until March 7, 2024 to respond to the Request for Arbitration.
Yunlin Offshore Wind Farm is located in the Taiwan Strait, about 8 kilometers west of the coast of Yunlin County, with a capacity of 640 megawatts, and will install 80 Siemens Gamesa's 8 megawatt offshore wind turbines4 terawatt-hours (TWh) of renewable electricity, enough for 60The electricity needs of 50,000 households.
Following SAPURA's exit, Abu Dhabi-based National Petroleum Construction Corporation (NPCC) took over the remaining monopile haulage and installation of the project. However, construction of the project was suspended due to a monopile overboard accident during the subsequent construction of the wind farm.
September 2023, FredOlsen Windcarrier (FOWIC) and Shimizu have announced that they have been awarded a contract to transport and install monopile foundations for the Yunlim Offshore Wind Farm and deploy the wind installation vessel "Blue Wind" for a 200-day installation operation starting in February 2024.