HOUSTON – (February 6, 2019) – Wood and KBR,Inc. (NYSE: KBR) have secured a new multimillion dollar contract to deliver integrated front-end engineering design (FEED) for Shell Australia's Crux project to build a not normally manned (NNM) platform and gas export pipeline located approximately 600km north of Broome, offshore Western Australia (WA).
The Crux facilities will be an important source of backfill gas supply to the Shell-operated Prelude floating liquefied natural gas (FLNG) facility. The remotely operated, minimum facilities NNM platform concept for Crux will dry the gas and export the gas/condensate to Prelude via a new 160km multiphase gas pipeline.
The services will be delivered over 18-months by Wood and KBR's engineering and project management teams in Perth, WA, supported by Wood's Kuala Lumpur resource base. The teams will provide a single integrated FEED for the Crux topsides, jacket, export pipeline and subsea pipeline end manifold (PLEM).
Wood and KBR bring together over 80 years of history working in the Australian energy industry combining their collective strengths in subsea engineering and offshore gas processing facilities.
Robin Watson, Wood's chief executive comments: "This contract win to deliver the next generation of offshore facilities for Shell Australia demonstrates our unrivalled subsea pipeline expertise and offshore engineering capabilities.
"Wood has extensive experience in delivering technically complex subsea engineering projects in Western Australia. We are committed to expanding our portfolio in the region, developing local content by investing in industry talent, resources and supply chain.
"Working alongside each other for more than 20 years, Wood and KBR provide a powerful combination, leveraging the experience of two tier one contractors."
Wood also provides specialist consultancy services for flexible riser integrity management to the Shell-operated Prelude FLNG facility.
Stuart Bradie, KBR President and CEO, said: "KBR is committed to adding value to our customers. That's why we are delighted to partner with Wood to bring together two industry leaders to deliver one world-class complimentary team whilst continuing our long relationship with Shell and Perth, Australia."
"This win builds on KBR's long offshore experience in Australia and reinforces our extensive global leadership position in unmanned offshore facilities."
Wood is a global leader in the delivery of project, engineering and technical services to energy and industrial markets. We operate in more than 60 countries, employing around 60,000 people, with revenues of over $10 billion. We provide performance-driven solutions throughout the asset life cycle, from concept to decommissioning across a broad range of industrial markets, including the upstream, midstream and downstream oil & gas, power & process, environment and infrastructure, clean energy, mining, nuclear, and general industrial sectors.
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The Shell-operated Crux Project has been identified as the primary source of backfill gas supply to the Prelude FLNG Facility, located in Commonwealth marine waters in the northern Browse Basin, 620km north-east of Broome.
The concept is a Not Normally Manned Platform containing minimal processing facilities, utility systems and will be operated remotely from the Prelude FLNG Facility.
Shell Australia is the Operator with SGH Energy and Osaka Gas as Joint Venture Participants.
KBR is a global provider of differentiated professional services and technologies across the asset and program lifecycle 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 lifecycle 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, 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 and gasification
- Hydrocarbons Services, 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); program management and consulting services
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
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 U.S. 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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