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KBR Awarded Concept and FEED Contract for Statoil's Ground-Breaking Northern Lights Project

Wire Release

HOUSTON – November 28, 2017 - KBR, Inc. (NYSE: KBR) announced it has been awarded the Concept and FEED (front-end engineering design) contract by Statoil for their ground-breaking Northern Lights Project, to develop an onshore carbon dioxide (CO2) – a known greenhouse gas – storage terminal in Norway.

The terminal is a key component of the Carbon Capture and Storage (CCS) demonstration project being undertaken by Gassnova, where Statoil, in partnership with Shell and Total are responsible for transport and storage. The work will be performed by KBR in conjunction with its Granherne subsidiary.  In addition to the CO2 storage terminal, the engineering scope will address the import jetty topsides, the CO2 re-injection lines and associated utilities.

The first phase of this project will provide storage for up to 1.5 million tonnes of CO2 per year.  CO2 captured from onshore industrial plants in Eastern Norway, will be transported by ship to the onshore terminal.   The project will allow for further expansion to receive additional CO2 volumes, with the aim of stimulating new commercial carbon capture projects in Norway, Europe and other countries around the world.

"We are excited to be part of this significant and ground-breaking project and to continue our long-standing and valued relationship with Statoil," said Jay Ibrahim, President, EMEA. "KBR is very supportive of continuing the spirit of innovation in CCS."

Construction of the full-scale project including the onshore terminal is subject to the Norwegian parliament making a positive investment decision, scheduled for 2019.

Revenue associated with this project will be booked into backlog of unfilled orders for KBR's E&C Business Segment in Q4 of 2017.

About KBR, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons sectors. KBR employs over 34,000 people worldwide (including our joint ventures), 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.

Visit www.kbr.com

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
Nelson Rowe
Senior Vice President, Investor Relations
713-753-5082
Investors@kbr.com

Media
Brenna Hapes
External Global Communications
713-753-3800
Mediarelations@kbr.com

Andrea Newman
Communications, EMEA UK
44 1372 864655
Res.Comm_EMEA@kbr.com