KBR Awarded FEED Contract for BP's Tortue Project

HOUSTON, Oct. 12, 2018 /PRNewswire/ -- KBR, Inc. (NYSE: KBR) announced today that its UK operating subsidiary has been awarded a Front End Engineering Design (FEED) contract by BP for Phase 1 of the Tortue field Hub/Terminal development located on the maritime border between Senegal and Mauritania.  The agreement contains a mechanism to allow transition of the contract to an Engineering, Procurement and Construction Management (EPCM) contract at a later date.

Under the terms of the contract, KBR will provide management of the Quarters and Utilities (QU) including Telecoms Systems FEED and provision of supplemental services (system engineering, interface oversight, technology planning, support and verification) of the Hub/Terminal for the Tortue project in Senegal and Mauritania. The FEED work is to be performed up to the end of 2018 to support the FID.  Local content was carefully considered as part of the regular contract evaluation process, and will continue to be closely reviewed to identify potential opportunities during KBR FEED engineering work.

"We are proud to continue to be part of this significant project providing this technical assurance and facilities integration role to BP," said Jay Ibrahim, KBR President, Europe, Middle East and Africa and Asia-Pacific.  "This win is indicative of KBR's strategic commitment to our partner BP, building on concept work done by our subsidiary Granherne, and then the Pre-FEED that was executed by KBR and now to this FEED award."

Estimated revenue associated with this project will be booked into backlog of unfilled orders for KBR's Hydrocarbons Services Business segment in the fourth quarter of 2018.

About KBR, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons sectors. KBR employs approximately 34,000 people worldwide (including our joint ventures), with customers in more than 75 countries, and operations in 40 countries, across three synergistic global businesses:

• Government Services, serving government customers globally, including capabilities that cover the full life-cycle of defense, space, aviation and other government programs and missions from research and development, through systems engineering, test and evaluation, program management, to operations, maintenance, and field logistics
• Technology & Consulting, including proprietary technology focused on the monetization of hydrocarbons (especially natural gas and natural gas liquids) in ethylene and petrochemicals; ammonia, nitric acid and fertilizers; oil refining; gasification; oil and gas consulting; integrity management; naval architecture and proprietary hulls; and downstream consulting
• Engineering & Construction, including onshore oil and gas; LNG (liquefaction and regasification)/GTL; oil refining; petrochemicals; chemicals; fertilizers; differentiated EPC; maintenance services (Brown & Root Industrial Services); offshore oil and gas (shallow-water, deep-water, subsea); floating solutions (FPU, FPSO, FLNG & FSRU) and program management

KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery and long term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

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Forward Looking Statement

The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.

KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

SOURCE KBR, Inc.