KBR Awarded Construction Contract for Chevron’s Base Oil Project in Pascagoula, MS

Houston, Texas — April 27, 2011 — KBR (NYSE:KBR) today announced it has been awarded a $65 million contract by Chevron Products Company to execute a Base Oil expansion project at Chevron’s refinery in Pascagoula, MS. The construction project includes building a new lubes hydrocracker and a lube dewaxing / hydrofinishing unit. KBR intends to hire staff locally for the execution of this project. Work is expected to begin in May, and upon completion, the facility is expected to be one of the largest premium base oil plants in the world.

“We are proud to have been selected to execute the delivery of this project, helping Chevron become one of the world's largest producers of premium base oil,” said David Zimmerman, President, KBR Services. “KBR has a long history of executing major construction projects in this region and at this refinery. We look forward to continuing this tradition, using local resources to deliver a project that meets schedule and cost targets while maintaining KBR’s absolute commitment to safety excellence.”

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, industrial, and commercial markets. For more information, visit www.kbr.com.

CONTACT:
Rob Kukla, Jr.
Director, Investor Relations
713-753-5082
investors@kbr.com
or
Gabriela Segura
Manager, Media Relations
713-753-8694
gabriela.segura@kbr.com