HOUSTON – (April 19, 2017) – KBR, Inc. (NYSE: KBR) announced today it has been awarded a contract by PT Chevron Pacific Indonesia for engineering, project and construction management services for Chevron's operating fields in Sumatra, Indonesia. The five year contract will be executed through a consortium formed between KBR and its Indonesian partner, PT Singgar Mulia Engineering Consultants.
As part of the consortium, KBR's project scope includes project and portfolio management, engineering design and construction management for Chevron's hydrocarbon production surface facilities at the Minas, Duri and Dumai fields in Sumatra, Indonesia. The consortium will provide in-country services to manage daily operational activities for Chevron's production facilities; including providing local and global personnel, tools and procedures, best work practices and processes, as well as establishing and maintaining infrastructure and providing health, environment and safety training to the workforce. Through this project, the consortium will conduct training programs to help the local work community develop essential skills for current and future employees on these projects.
"KBR is pleased with the opportunity to continue our sustained relationship with Chevron by providing our expertise, best practices and knowledge in engineering, program management and construction management to oversee Chevron's field production activities in Indonesia, where we have a substantial presence," said Stuart Bradie, KBR President & CEO. "This contract demonstrates KBR's ability to establish strong local partnerships as well as our global oil and gas capabilities for new and brownfield project developments in any location across the globe."
"Moreover, this long term operational support services contract furthers KBR's strategic objective of growing the operating expenditure-facing portion of our business," Bradie continued."
With more than 70 years' experience developing projects for the upstream oil & gas industry, KBR excels in providing comprehensive, sustainable and integrated solutions that help customers minimize risk and deliver successful projects across the globe. KBR's proven track record of delivering quality engineering, program management, procurement and construction provides top quality services to clients.
Revenue associated with this project was undisclosed and will be booked into backlog of unfilled orders for KBR's Engineering & Construction Business Segment in Q2 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.
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.
For further information, please contact:
Senior Vice President, Investor Relations
Marit Babin Stout
Vice President, Global Communications & Government Relations