KBR Awarded Eurasian FLNG FEED Contract

Jun 02, 2015 07:00 JST

Source: KBR, Inc.

Houston, TX, Jun 02, 2015 - (ACN Newswire) - KBR, Inc. (NYSE: KBR) announced today it has been awarded a near-shore floating LNG Front End Engineering Design (FEED) contract by Lloyds Energy Ltd.

Under this contract, KBR will provide integrated topsides and hull engineering design services for a nominal 2.5 million TPA floating natural gas liquefaction plant (FLNG). Start-up of the project facilities is expected to take place in 2019.

All LNG processing facilities, together with the associated utilities and power generation, will be located on the FLNG barges, which will be moored at the end of a new single jetty, about 3.5km in length. LNG storage will be in the barge hulls and loading will be via a separate LNG carrier berth at the end of the jetty.

"This is a significant milestone in KBR's FLNG industry strategy, and our relationship with Lloyds Energy complements our existing FEED experience for the Coral South FLNG project in Mozambique," said Jan Egil Braendel and, KBR President, Engineering & Construction for the Europe, Eurasia & Africa (EEA) region. "We look forward to working with Lloyds Energy so that together we may achieve their goal of developing strategically important near-shore FLNG projects across a range of locations."

Stuart Bradie, KBR President and CEO said, "Because of KBR's strong position within the LNG market, the company can satisfy the needs of our LNG customers, regardless of the phase of the project. KBR designs and manages projects, from concept through to construction and commissioning. This expertise underpins why KBR is responsible for one third of the world's operating LNG capacity, across a range of locations in Africa, Asia, the Middle East and Australia."

"The ultimate objective is to establish a program of multiple near-shore FLNG projects, based on one single and original design", said Konstantinos Mitropoulos, Lloyds Energy CEO.

"Our vision at Lloyds Energy is to successfully deliver, through near-shore FLNG technology, a viable alternative to traditional and capital intensive onshore LNG developments," Mitropoulos said. "Lloyds Energy is extremely pleased to be working with KBR on this exciting project. Both companies have experienced FLNG teams with full asset-cycle exposure, from concept development through to long term asset management. We are confident that we have chosen the best contractors in the industry to support this project."

The contract value was not disclosed. Expected revenue from the contract will be included in KBR's second quarter 2015 backlog of unfilled orders for its Engineering and Construction business lines. Work has already commenced and is expected to be completed in the first half of the first quarter 2016.

About KBR, Inc.

KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing about 25,000 people worldwide with customers in more than 70 countries and operations in 40 countries across three distinct global businesses:

- Technology & Consulting, including proprietary technology in refining, ethylene, ammonia and fertilizers, and gasification; and niche consulting and know-how through Granherne/Energo and GVA;
- Engineering & Construction, including Upstream Oil & Gas; LNG/GTL; Downstream Oil & Gas, Petrochemicals and Chemicals; and differentiated EPC; and,
- Government Services, including program management and long term annuity contracts.

KBR is proud to work with its customers across the globe to provide technology, value-added consulting services and integrated EPC skills to ensure a consistent project delivery with predictable results. At KBR, we deliver.

Visit http://www.kbr.com.

Forward Looking Statement

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements regarding our plans, objectives, goals, strategies, future events, future financial performance and backlog information and other information that is not historical information. When used in this presentation, the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts" or future or conditional verbs such as "will," "should," "could," or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, and projections will be achieved. There are numerous risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from the forward-looking statements contained in this presentation. These risks and uncertainties include, but are not limited to: current or future economic conditions; our ability to obtain and perform under contracts from existing and new customers, including the U.S. Government; exposure to cost overruns, operating cost inflation and potential liability claims and contract disputes; access to trained engineers and other skilled workers; risks relating to operating through joint ventures and partnerships; risks inherent in doing business internationally; potential tax liabilities; maritime risks; changes in the demand for our services and increased competition; protection of intellectual property rights; risks associated with possible future acquisitions; risks related to our information technology systems; impairment of goodwill and/or intangible assets; reduction or reversal of previously recorded revenues; risks relating to audits and investigations, including by governments; compliance with laws and regulations, and changes thereto, including those relating to the environment, trade, exports and bribery; our creditworthiness and ability to comply with the financial covenants in our credit agreement; and other risk factors discussed in our most recently filed Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings. All forward-looking statements attributable to us, or persons acting on our behalf, apply only as of the date made and are expressly qualified in their entirety by the cautionary statements in this presentation. Except as required by law, we undertake no obligation to revise or update forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

For further information, please contact:

Investors
Zac Nagle
Vice President, Investor Relations
+1-713-753-5082
Investors@kbr.com

Media
Marit Babin
Director, Global Communications & Government Relations
+1-713-753-3800
mediarelations@kbr.com

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Source: KBR, Inc. via Globenewswire

Source: KBR, Inc.