Press Release

HOUSTON - March 8, 2016 - KBR, Inc. (NYSE: KBR) today announced its SOCAR-KBR joint venture was awarded a significant project management consultancy (PMC) Contract for the Heydar Aliyev Baku oil refinery modernization project in Azerbaijan.

This award marks the first major award to the joint venture, SOCAR-KBR Limited Liability Company (SOCAR-KBR LLC), since its inception in mid-2015. SOCAR-KBR LLC was created to provide design, engineering, technical, consultancy, procurement, construction supervision and project management services for all brownfield and greenfield projects across the upstream, midstream and downstream oil and gas sectors, in the AzerbaijanÐGeorgiaÐTurkey (AGT) region. This company was formed to help Azerbaijan's ambition for creating a world-class Azerbaijan based engineering company.

SOCAR-KBR LLC will build upon KBR's long-term project experience in Azerbaijan to perform project management services from its established offices in Baku for the Heydar Aliyev Baku oil refinery modernization project.

Addressing the contract signing ceremony, Rovnag Abdullayev, SOCAR's President, said, "The Heydar Aliyev refinery reconstruction project is currently one of the most important investments for SOCAR globally, and I am very happy that this project is in the capable hands of one of SOCAR's own entities-namely the SOCAR-KBR joint venture."

The overall refinery capacity will be increased from 6 to 7.5 million tons per year (MYPY). The catalytic cracking unit capacity will be increased from 2 to 2.5 MTPY, and Euro 5 standards will be established for all refined products. The modernization of the Heydar Aliyev Baku oil refinery will begin immediately and will be completed by late 2018, with an estimated capital cost of $1 billion USD for the total project.

"KBR is proud to support our long term partner SOCAR on this project. It is very significant that SOCAR-KBR LLC, as an Azerbaijani Company, takes on the PMC role for this key project for Azerbaijan," said Jan Egil Braendeland, President, KBR EEA and SOCAR-KBR LLC Board Member. "KBR has worked on various projects in Azerbaijan since 1994, achieving more than 17 million man-hours. At peak times, KBR employed nearly 400 Azerbaijani workers-expending more than 4 million man-hours in country. We are very proud of our track record to the Azeri economy," continued Braendeland.

The value of the PMC contract is undisclosed and will be booked into the backlog of unfilled orders for KBR's Engineering & Construction business segment in Q1 of 2016.

About KBR, Inc.

KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing approximately 22,000 people worldwide with customers in more than 70 countries and operations in 40 countries across three distinct global businesses: Technology & Consulting, including proprietary technology in refining, ethylene, ammonia and fertilizers, and gasification; and niche consulting and know-how through subsidiaries Granherne, Energo and GVA; Engineering & Construction, including Offshore Oil & Gas; Onshore Oil & Gas; LNG/GTL; Refining; Petrochemicals; Chemicals; differentiated EPC, and Industrial Services; Government Services, including program management and long term annuity contracts.

KBR is proud to work with its customers across the globe to provide technology, value-added consulting services, integrated EPC delivery and Long Term Industrial Services to ensure consistent project 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.

For further information, please contact:

Investors
Zac Nagle
Vice President, Investor Relations
713-753-5082
[email protected]

Media
Marit Babin
Director, Global Communications & Government Relations
713-753-3800
[email protected]