HOUSTON – (December 22, 2016) – KBR, Inc. (NYSE: KBR) announced today it has been awarded a contract by PT PLN, the Indonesian State-owned power generation company, for engineering and design services to expand the gas supply infrastructure across Indonesia.
Under the terms of the contract, KBR will perform the feasibility study to develop a reliable, efficient and robust infrastructure and logistics ecosystem for the LNG regasification of and gas supply to the multiple gas fired power plants in Sumatera, Maluku and Papua provinces, with the potential for additional locations.
With the findings and recommendations from the feasibility study, KBR will then perform the front end engineering design (FEED) work for the proposed infrastructure schemes, developing preliminary engineering designs and technical design basis. During the course of the project, KBR will also provide on-the-job training to PLN's project team members.
Both the feasibility study and FEED work are expected to be performed over approximately nine months through an integrated team led by LNG expertise from KBR's London office with support from KBR's Jakarta office and its Granherne subsidiary.
"KBR is very pleased to be awarded this important project for the realization of a significant expansion of Indonesia's gas infrastructure as part of its power supply plan. We look forward to continuing our long history in Indonesia and our valued relationship with PT PLN," said Greg Conlon, KBR President, Asia Pacific. "This project demonstrates KBR's ability to offer integrated solutions through a collaborative execution model to our customers in Asia Pacific by bringing together our global knowledge, experiences and expertise," Conlon continued.
For more than 40 years, KBR has led the concept development, study, design and construction of over forty-five percent of the world's LNG facilities. KBR has participated in nearly 50 LNG terminal projects covering all project phases including feasibility studies, basic design, FEED and engineering, procurement and construction (EPC) execution.
Revenue associated with this project was undisclosed and will be booked into backlog of unfilled orders for KBR's Engineering & Construction Business Segment in Q4 2016.
About KBR, Inc.
KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Hydrocarbons and Government Services Sectors. KBR employs over 31,000 people worldwide, with customers in more than 80 countries, and operations in 40 countries, across three synergistic global businesses:
- Government Services, serving government customers globally, including capabilities that cover the full life-cycle 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 & Consulting, 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; gasification; oil and gas consulting; integrity management; naval architecture and proprietary hulls; and downstream consulting
- Engineering & Construction, 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) and program management
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.
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.
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Marit Babin Stout
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