September 1, 2016 / 9:40 AM / 3 years ago

UPDATE 1-Samsung firms cancel $2.5 billion Kazakhstan power plant project

(Updates with comments from Samsung C&T, Samsung Engineering)

SEOUL, Sept 1 (Reuters) - South Korea’s Samsung C&T Corp and Samsung Engineering Co Ltd have decided to terminate a thermal power plant project in Kazakhstan worth a combined 2.8 trillion won ($2.50 billion), the companies said in regulatory filings on Thursday.

The companies in December 2014 announced the joint construction of the Balkhash Thermal Power Plant, a 1,320 megawatt coal-fired power plant in Ulken, Kazakhstan. In the regulatory filings, Samsung C&T and Samsung Engineering said in they have terminated the contract as of Wednesday.

A Samsung C&T spokeswoman told Reuters the company decided to drop the contract as factors such as low oil prices and a delay in regulatory approval undermined the business rationale.

Samsung C&T said in another filing that it exercised a put option for its stake in the power plant’s joint stock company, that placed the construction order to the Samsung companies, to state-owned Samruk Energy for $192.5 million.

$1 = 1,121.8500 won Reporting by Se Young Lee; Editing by Christian Schmollinger

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