Market Overview

KBR to Execute Oil Sands Tailings Management Project for Syncrude Canada Ltd.

Houston, Texas — — KBR (NYSE:KBR) announced today that it was awarded two contracts for Syncrude Canada Ltd. (Syncrude) to execute module fabrication and field construction for its Fluid Fine Tailings – Centrifuging Full Scale Plant (FFT-CFSP) in Fort McMurray, Alberta, Canada. Syncrude, which operates a surface mining oil sands plant in northeastern Alberta, is currently implementing a multi-pronged approach to manage tailings – the byproduct of the bitumen extraction process.

KBR Canada subsidiary, KBR Industrial Canada, Co., as the General Contractor, will provide constructability, module fabrication and construction services for FFT-CFSP, a project using Syncrude's newest tailings reduction technology. Module fabrication is scheduled to begin late this year and run through the end of 2013. Construction will follow with mechanical completion scheduled to allow plant start-up in 2015. The process is designed to pump fluid fine tailings through a series of centrifuges to separate the maximum amount of water from the solids. Released water will be recycled for plant operations and the soil product of the centrifuge process will have sufficient density and strength to be placed in deposits, then capped and reclaimed.

'With a long history of successful project delivery for Syncrude, we are pleased to collaborate once again with one of our premier clients on FFT-CFSP,' said Karl Roberts, Senior Vice President, KBR Canada. 'As a veteran Alberta module fabricator and contractor, KBR has coupled our experience and strengths to deliver a comprehensive execution plan that will ensure Syncrude of a world-class environmental project.'

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.

— WebWireID165596 —


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