KBR Joint Venture Awarded FEED Contract for Absheron Field in Azerbaijan

KBR Joint Venture Awarded FEED Contract for Absheron Field in Azerbaijan

PR Newswire

HOUSTON, Nov. 22, 2017 /PRNewswire/ -- KBR, Inc. (NYSE: KBR) announced today that the SOCAR-KBR Limited Liability Company (SKLLC) joint venture has been awarded a Front-End Engineering Design (FEED) contract for the topsides of the Absheron Early Production Project. The platform will be located at SOCAR's Oil Rocks facility and will deliver gas and condensate into the SOCAR network.

This award marks the 3rd award to the SKLLC joint venture since its inception in mid-2015. SKLLC was formed to help further Azerbaijan's ambition for creating a world-class Azerbaijan based engineering company.

SOCAR and Total signed a framework agreement in late 2016 on the main contractual and commercial principles regulating the program for the first phase of development of the Absheron field. At the first stage, the field development includes drilling one well at a depth of 450 meters. The extraction will amount to 1.5 billion cubic meters of gas a year, which will fully flow to the domestic market of Azerbaijan, as well as significant amounts of condensate. First gas could be produced in 2019.

SKLLC, a local Azerbaijani company, is built on the combined 110 years of experience between KBR and SOCAR.  The joint venture partners KBR's experience in the Azerbaijan, Georgia, Turkey region and its proven tools, systems and procedures with SOCAR's operational knowledge and experience in the oil and gas sector. KBR has been working in Azerbaijan for over 24 years, giving it unrivalled experience and knowledge of local onshore and offshore greenfield and brownfield assets.

"We are proud to bring the unmatched experience, vision, and leadership of SKLLC to this strategic project," said Jay Ibrahim, KBR's President for Europe, Middle East and Africa. "Azerbaijan is an important market for KBR and our strong Azerbaijani and international team members are dedicated to success for the region."

"Our local engineering capability is growing day by day and currently more than 75% of our team is local Azerbaijani staff," Ibrahim continued.  "We are happy to see positive impacts of this growth on the local engineering market and oil and gas industry and I am confident that SKLLC will be a home for Azerbaijan engineers where they can enjoy working for various projects and deliver many more successful projects for clients in the region," Ibrahim continued.

The value of the contract will be booked into the backlog of unfilled orders for KBR's Engineering & Construction business segment in Q4 of 2017.

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 over 34,000 people worldwide (including our joint ventures), with customers in more than 80 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.

Visit www.kbr.com

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.

 

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SOURCE KBR, Inc.