KBR Subsidiary Awarded Offshore Study by Woodside Energy Ltd.

Houston, Texas - November 12, 2007 - KBR (NYSE:KBR) today announced that its subsidiary, Granherne, along with joint venture partner WorleyParsons Select, has been awarded the topsides and substructures concept and definition study for the Browse LNG Development's "Browse to Burrup" option.

KBR subsidiary GVA Consultants is also expected to provide consultancy services for phase two of the study. The Browse LNG Development, with an estimated resource of about 20 trillion cubic feet of gas located offshore Australia, is a joint venture between operator Woodside, BP, BHP Billiton, Chevron and Royal Dutch Shell. Work is already underway and is expected to be completed by mid 2008.

"This award is a testament to the technical expertise of our staff and also demonstrates our global reach through our centers of excellence in Perth, London and Houston," said Clive Vaughan, managing director, Granherne. "This study marks our continued commitment to delivering high-quality service to Woodside. We look forward to continuing that commitment through this project, working with our joint venture partners."

Granherne is a leading front-end engineering consultancy for onshore, offshore and deepwater oil and gas developments and has experience on over 3,000 projects in more than 20 countries. Granherne has provided services for more than 100 subsea developments, including step out expansions, marginal fields and major subsea projects. GVA Consultants is one of the world's leading marine engineering companies with more than 20 years experience designing drilling and floating production semi-submersibles.

KBR is a global engineering, construction and services company supporting the energy, petrochemicals, government services and civil infrastructure sectors. The company offers a wide range of services through its Upstream, Downstream, Technology, Services, Government and Infrastructure 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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