Singapore-based shipbuilder Seatrium said on Monday it has reached a settlement with Denmark's Maersk to deliver an offshore wind vessel that was intended to work on a project off the coast of New York.

Seatrium announced Maersk terminated the contract on October 10, citing construction delays, but did not say at the time whether it had paid for the work completed.

Under the agreement reached on Monday, Maersk is set to pay the balance of $360 million of the total contract price of $475 million. Around $250 million of the balance will be paid using an interest-bearing credit arrangement for up to 10 years, where it will be repayable through cash generated by the vessel.

Both parties have also agreed to withdraw and discontinue all legal proceedings as the "optimal way forward," taking into consideration financial impacts and the risk of lengthy and costly proceedings, among others.

As of December 22, the project is around 99.8% completed, Seatrium added in its statement.