KBR Awarded License Contract for Largest ROSE® Unit Design
HOUSTON - (December 5, 2016) - KBR, Inc. (NYSE: KBR) announced today it has been awarded a license and basic engineering design (LBED) contract by Hyundai Oilbank (HDO) for an 80,000 bpd ROSE® unit in Daesan, South Korea. The unit will be built using KBR's proprietary ROSE technology, which provides supercritical solvent deasphalting (SDA), and will be the largest SDA unit in the industry.
Under the terms of the contract, KBR will provide the license for use of ROSE technology, as well as basic engineering design and post-start up services. The unit is expected to come on-line around the end of 2018.
The ROSE unit will remove heavier fractions from crude oil, allowing the refinery to monetize a larger proportion of its oil intake into lighter, high-grade products, which will enhance HDO's refinery margin.
"ROSE is one of the most cost effective ways to recover more valuable product from every barrel of oil," said John Derbyshire, President of KBR Technology & Consulting. "We are proud to partner with Hyundai Oilbank to help them upgrade their residue and become more competitive in the global refining landscape."
ROSE is a highly reliable process and the market leader that consistently delivers tremendous value for the investment. KBR has licensed over 55 ROSE units globally.
KBR delivers world-class solutions to the petroleum refining market including more than 60 greenfield refineries and well over 1,000 refining process units worldwide.
Revenue associated with this project was booked into backlog of unfilled orders for KBR's Technology & Consulting business segment in Q2 of 2016.
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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