KBR Inc Awarded Eurasian FLNG FEED Contract, No Terms

KBR, Inc. (NYSE: KBR) announced today it hasbeen awarded a near-shore floating LNG Front End Engineering Design(FEED) contract by Lloyds Energy Ltd. Under this contract, KBR will provide integrated topsides and hullengineering design services for a nominal 2.5 million TPA floatingnatural gas liquefaction plant (FLNG). Start-up of the projectfacilities is expected to take place in 2019. All LNG processing facilities, together with the associated utilitiesand power generation, will be located on the FLNG barges, which will bemoored at the end of a new single jetty, about 3.5km in length. LNGstorage will be in the barge hulls and loading will be via a separateLNG carrier berth at the end of the jetty. "This is a significant milestone in KBR's FLNG industry strategy, andour relationship with Lloyds Energy complements our existing FEEDexperience for the Coral South FLNG project in Mozambique," said JanEgil Braendeland, KBR President, Engineering & Construction for theEurope, Eurasia & Africa (EEA) region. "We look forward to working withLloyds Energy so that together we may achieve their goal of developingstrategically important near-shore FLNG projects across a range oflocations." Stuart Bradie, KBR President and CEO said, "Because of KBR's strongposition within the LNG market, the company can satisfy the needs of ourLNG customers, regardless of the phase of the project. KBR designs andmanages projects, from concept through to construction andcommissioning. This expertise underpins why KBR is responsible for onethird of the world's operating LNG capacity, across a range of locationsin Africa, Asia, the Middle East and Australia." "The ultimate objective is to establish a program of multiple near-shoreFLNG projects, based on one single and original design", saidKonstantinos Mitropoulos, Lloyds Energy CEO. "Our vision at Lloyds Energy is to successfully deliver, throughnear-shore FLNG technology, a viable alternative to traditional andcapital intensive onshore LNG developments," Mitropoulos said. "LloydsEnergy is extremely pleased to be working with KBR on this excitingproject. Both companies have experienced FLNG teams with fullasset-cycle exposure, from concept development through to long termasset management. We are confident that we have chosen the bestcontractors in the industry to support this project." The contract value was not disclosed. Expected revenue from the contractwill be included in KBR's second quarter 2015 backlog of unfilled ordersfor its Engineering and Construction business lines. Work has alreadycommenced and is expected to be completed in the first half of the firstquarter 2016.