Latest news with #Barakah
Korea Herald
5 days ago
- Business
- Korea Herald
Korea inks $18b nuclear export deal with Czech Republic
South Korea secures its first nuclear export in 16 years since Barakah project in UAE South Korea has clinched a landmark $18 billion contract with the Czech state utility to build new nuclear reactors in the Czech Republic, following a court decision to lift an injunction that had temporarily blocked the signing. This is Korea's second-ever nuclear export project, following the Barakah plant in the United Arab Emirates in 2009. Czech Prime Minister Petra Fiala announced the closing of the deal in a nationally televised press conference Wednesday, just hours after the Czech Supreme Administrative Court lifted the injunction filed by EDF, a French bidder that lost the tender. "We have removed all doubts and legal obstacles that prevented the nuclear power plant project from being launched," Fiala said during the conference. The signing took place digitally between Korea Hydro & Nuclear Power and Elektrarna Dukovany II (EDU II), a subsidiary of the Czech state-run utility in charge of operating the nuclear plants in Dukovany. Under the agreement, KHNP will build two 1,000 megawatt APR-1000 reactors — Dukovany Units 5 and 6 — with completion targeted for 2036 and 2037, respectively. "The deal is a testament to the technological excellence and global reliability of Korea's nuclear industry," KHNP CEO Whang Joo-ho said. "KHNP will carry out the project with the highest safety and quality standards, strengthening Korea's competitiveness in the global nuclear energy market." The deal marks a symbolic milestone for Korea, which once imported European nuclear technologies, but is now exporting its own, KHNP said. Korea adopted France's Framatome reactor for its Hanul 1 and 2 units in 1982. KHNP will serve as the lead EPC (engineering, procurement and construction) contractor and oversee the full scope of the project while working with a consortium of top Korean firms. Kepco E&C will be in charge of design and engineering, and Doosan Enerbility will be responsible for equipment supply and construction. Daewoo E&C will lead the structural construction, while Kepco NF and Kepco KPS will each take on nuclear fuel supply and commissioning and maintenance. KHNP said it plans to establish an onsite project office near the Dukovany plant to facilitate early-stage work, such as permitting, site surveys and document management. The energy firm said it would hold two briefing sessions this year outlining the qualification requirements and technical standards for Korean suppliers interested in participating in the Czech project. KHNP had originally been set to sign the deal on May 7, after being named preferred bidder over France's EDF and US-based Westinghouse in July 2024. The signing was postponed, however, when a Czech court accepted a last-minute injunction filed by EDF, which claimed irregularities in the bidding process. Despite the delay, both sides continued preparations. KHNP and EDU II appealed the ruling, and the higher court said Wednesday it found the injunction's claims unsubstantiated. The Czech government also preapproved the contract between CEZ and KHNP, allowing the deal to proceed immediately if the injunction was lifted. The Dukovany project is part of the Czech Republic's largest infrastructure initiative for long-term energy security and decarbonization goals. With the Czech government expected to decide within the next five years on expanding the Temelin nuclear site, KHNP remains eligible to negotiate additional contracts for the potential new units.
New Straits Times
23-05-2025
- Business
- New Straits Times
Barakah Offshore shares crash over 80pct after delisting notice
KUALA LUMPUR: Shares of Barakah Offshore Petroleum Bhd plunged more than 80 per cent to rock bottom, following news that the financially troubled oil and gas services firm faces a trading suspension and potential delisting from Bursa Malaysia. The counter opened at two sen before collapsing 83.33 per cent to half a sen by 9.20am, with 13.4 million shares traded, its highest volume in at least six months. The sell-off came after Barakah announced yesterday that Bursa Malaysia had rejected its application for more time to submit a regularisation plan under the Practice Note 17 (PN17) classification. Barakah has been classified as a PN17 company since 2019, after defaulting on payments to EXIM Bank related to a pipelay vessel. The company has now been given until May 30 for the trading suspension to take effect, with its securities set to be delisted on June 4 unless an appeal is submitted and approved by Bursa. In October 2024, Barakah had proposed a regularisation plan involving a RM195 million capital reduction, a three-into-one share consolidation and a private placement of 62.5 million new shares to its executive chairman to raise RM7.5 million. However, the plan was later withdrawn following a RM78.8 million adjudication award in Barakah's favour, prompting a reassessment of its restructuring strategy. Despite the award, the group remains in a precarious financial position. For the financial year ended June 30, 2024, Barakah reported accumulated losses of RM133.76 million, short-term borrowings of RM52.05 million, and a negative operating cash flow of RM13.36 million.
Korea Herald
20-05-2025
- Business
- Korea Herald
Czech utility appeals court order blocking $18b nuclear deal with KHNP
The Czech utility overseeing a major nuclear power project has filed an appeal to overturn a court order blocking the signing of an $18 billion contract with Korea Hydro & Nuclear Power, seeking to resolve a legal dispute that has delayed the agreement. On Monday in the Czech Republic, Elektrarna Dukovany II, a subsidiary of state-owned energy group CEZ, filed an appeal with the Czech Supreme Administrative Court to overturn the preliminary injunction issued by the Brno Regional Court on May 6 in favor of France's EDF, which lost the bid to KHNP. The injunction effectively suspended the contract just one day before it was scheduled to be signed by EDU II and KHNP. EDU II is leading the state project to build two new nuclear reactors at the Dukovany site in the Czech Republic. Since losing the tender, EDF has pursued legal action to block the deal, claiming that KHNP's bid was unrealistically low and backed by illegal state subsidies in violation of European Union rules. The Czech utility argues that the Brno Regional Court "incorrectly" assessed whether the public interest in signing the contract outweighs the theoretical possibility that the unsuccessful bidder, EDF, might reenter the competition. It also maintains that the tender process was carried out transparently over several years, with the bidding process officially beginning in March 2022. In a LinkedIn post, CEZ CEO Daniel Benes said the case goes beyond a single project, touching on the credibility of the Czech Republic's broader energy strategy. 'This is not just about a single project, but about trust in the legal environment and the stability of the state's energy strategy,' Benes said. 'I believe the Supreme Administrative Court will deliver a clear and swift decision.' Given the scale of the Dukovany project and the risk of significant financial losses if delayed, industry officials expect the court to expedite the case. Last July, KHNP won the bid to build the two 1,055-megawatt reactors — Units 5 and 6 — with construction scheduled to begin in 2029. The first reactor is targeted to go operational in 2036. The Czech government has preapproved the contract between CEZ and KHNP, allowing the deal to proceed immediately if the injunction is lifted. KHNP is also preparing to file for legal remedy with the Supreme Administrative Court. 'This situation could cause serious damage not only to the Czech national interest, but also to KHNP,' the company said in a statement. 'We remain confident that the Dukovany bidding process adhered fully to transparent legal procedures.' If finalized, the contract would mark Korea's second-ever nuclear export project, following the Barakah project in the United Arab Emirates in 2009 — and its first in 16 years.
Korea Herald
09-05-2025
- Business
- Korea Herald
KHNP vows cost-effective nuclear build, eyes European markets
PRAGUE — Korea Hydro & Nuclear Power's 50 years of experience and proven supply chain give it a competitive edge over rivals in securing the Czech Republic's $18 billion nuclear project, President and CEO Whang Joo-ho said Thursday. Although the contract, originally set to be signed this week, has been temporarily delayed by a court injunction following a legal challenge from a losing bidder, Whang emphasized that KHNP is fully prepared to move forward once legal hurdles are cleared. 'While there has been a slight delay, we believe things will progress smoothly, especially since the Czech Cabinet has already approved all aspects of the contract,' Whang told Korean reporters in Prague. CEZ, the Czech Republic's state-run utility, revealed that KHNP's proposal would enable electricity to be delivered at a cost up to 10 percent lower than that of rival bids from France's EDF and the US-based Westinghouse. Whang attributed this competitiveness to KHNP's long-standing supply networks and decades of nuclear construction expertise. 'We not only have the materials for the 1,000 megawatt reactors, but also proven supply chains developed through past projects, giving us confidence that we can deliver at the promised cost,' Whang said. The CEO also noted that rival companies have often faced significant challenges, with project timelines extending and budgets ballooning to two or three times the original estimates. 'We've carefully analyzed these factors and believe we're offering the best possible package,' he said. On concerns of possible cost overruns, Hwang drew a distinction between the Czech project and past challenges faced in the UAE's Barakah project, explaining that any delays there were due to client-added work, not KHNP's failures. 'In the nuclear industry, Korea is widely regarded as one of the rare players capable of consistently delivering on time and within budget,' he emphasized. When asked whether KHNP's bid for the Czech Dukovany nuclear project offers stronger cost efficiency compared to its past work on the UAE's Barakah reactors, Whang said the Czech contract reflects tighter controls and clear risk-sharing terms. Domestically, Korea's Shin Hanul 3 and 4 reactors cost just under 6.5 trillion won ($4.6 billion) each for 1.4 gigawatt units. The Czech project's 1.0 GW reactors, though not directly comparable, are expected to come in at a lower cost. Whang pointed out that the Czech contract is set at a relatively higher price compared to domestic projects due to overseas risk factors, but KHNP has worked to fully hedge those risks through detailed negotiations with CEZ. For maximum profitability, Whang emphasized leveraging Korean firms' proven supply chains. But where local Czech products or services offer better value, KHNP will work with them. 'The Czech Republic has a strong manufacturing base, and we're helping local partners quickly build the qualifications needed for nuclear work,' Whang said. CEZ has warned that a delay of several months could result in losses of hundreds of billions of dollars. When asked if KHNP would face similar losses, Whang explained, 'If we had signed yesterday, we could have fully mobilized and accounted for our workforce. Now, with the delay, we still need to retain certain staff, which leads to some losses — but relative to the overall scale of the project, it's not significant.' Looking beyond the Czech Republic, Hwang described Europe's nuclear contract landscape as a 'battlefield,' emphasizing that trying to break into highly complex legal environments through competitive bidding can drain KHNP's resources. Instead, he said the company is focusing on less legally burdensome markets like Norway and Sweden, where strong local developers work closely with governments to preselect nuclear sites and actively invite SMR suppliers, making them promising destinations for KHNP's small modular reactors.
