KBR Awarded Major FEED Contract by BP for Chirag Oil Project

Houston, Texas - March 23, 2009 - KBR (NYSE:KBR) today announced that it has been awarded a contract by BP, on behalf of Azerbaijan International Oil Company (AIOC), to provide front-end engineering and design (FEED) services for the Chirag Oil Project located in the Azerbaijan sector of the Caspian Sea.

KBR will provide FEED and procurement support services for a single, large drilling platform that ties into the existing Azeri-Chirag-Gunashli (ACG) oil field development infrastructure. The project award marks the next milestone in the Chirag Oil Project development, including an incremental expansion to the existing ACG field development. KBR has been involved with the development of the ACG project since 1995. Work on the project is already underway. Services will be provided through KBR's Leatherhead offices, as well as in Baku, Azerbaijan.

"This award follows successful performances by KBR on ACG Phases One, Two and Three, solidifying KBR's position as a leading contractor in the Caspian Sea region," said John Rose, President, KBR Upstream. "We are proud of the long-standing relationship KBR has developed with BP on the ACG project over the last 13 years, and we are committed to yet another successful project execution on the FEED phase of the Chirag Oil Project."

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services and civil infrastructure sectors. The company offers a wide range of services through its Downstream, Government and Infrastructure, Services, Technology, Upstream and Ventures business segments. For more information, visit www.kbr.com.

CONTACT:
KBR, Houston
Director, Communications
Heather Browne, 713-753-3775
heather.browne@kbr.com
or
Director, Investor Relations
Rob Kukla, Jr., 713-753-5082
investors@kbr.com