Seatrium’s Jurong Shipyard Launches Arbitration Over P-54 FPSO Payments

The latest update is out from Seatrium Limited ( (SG:5E2) ).

Seatrium’s Jurong Shipyard unit has initiated arbitration proceedings in London against Petrobras Netherlands over a legacy contract for the P-54 FPSO conversion, originally signed in 2004 and later amended to address cost increases. A 2008 settlement had set a close-out payment of US$152.3 million, of which US$55.7 million was withheld pending a Brazilian audit, with Jurong reserving its right to claim that withheld amount through arbitration.

Following the Brazilian Federal Court of Accounts’ final decision in November 2023, Seatrium argues that the basis for withholding the US$55.7 million no longer applies, yet Petrobras continues to retain the funds and has instead demanded a net US$79.6 million, alleging overpayments under the contract. Seatrium is seeking to enforce full payment under the settlement and block further recovery attempts, and while it currently carries no balance sheet exposure to the disputed sum, the ultimate financial impact will depend on the outcome of the arbitration, which remains at a preliminary stage.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.96 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

More about Seatrium Limited

Seatrium Limited is a Singapore-based marine and offshore engineering group that operates primarily through its subsidiary Jurong Shipyard Pte Ltd. The company focuses on projects such as the conversion of floating production, storage and offloading (FPSO) vessels, serving major global energy companies and the wider offshore oil and gas industry.

Average Trading Volume: 9,143,057

Technical Sentiment Signal: Sell

Current Market Cap: S$6.98B

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