KBR Joint Venture Awarded PNG LNG Upstream Projects Services Contract by ExxonMobil

Houston, Texas - June 4, 2009 - KBR (NYSE:KBR) today announced the award by Esso Highlands Ltd (a subsidiary of Exxon Mobil Corporation) to the Eos Joint Venture (an unincorporated joint venture comprising WorleyParsons and Kellogg Brown & Root) an agreement covering Project Services for the PNG LNG Project. The agreement commenced in March 2009 and extends to the end of 2014.

The agreement, referred to as an "Enabling Agreement", facilitates requests from Esso Highlands to provide engineering, training, in-country support services and integrated project team services for construction and project management. It maintains Eos' engagement in the upstream component of the proposed PNG LNG development following the completion of Eos' current FEED services contract. Services will be provided from Brisbane, Australia and a number of sites in Papua New Guinea.

"We are pleased that Eos JV will play a key role in ExxonMobil's effort to make this world class LNG project a reality and look forward to supporting this important project," said John Rose, President, KBR Upstream.

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services and civil infrastructure sectors. The company offers a wide range of services through its Downstream, Government and Infrastructure, Services, Technology, Upstream and Ventures business segments. For more information, visit www.kbr.com.

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KBR, Houston
Director, Communications
Heather Browne, 713-753-3775
heather.browne@kbr.com
or
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Rob Kukla, Jr., 713-753-5082
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