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KBR Partnership Awarded FEED Contract for Tangguh LNG Expansion Project

KBR, Inc. (NYSE: KBR) announced today that its joint venture partnership with PT Rekayasa Industri, JGC Corporation and PT JGC Indonesia, the RJK JV, has been awarded the onshore front-end engineering and design (FEED) contract by BP for a third liquefaction train at the Tangguh LNG Project in West Papua province, Indonesia.

The expansion project follows the successful completion in 2009 of the two train Tangguh LNG plant and associated facilities by a joint venture partnership between JGC Corporation, KBR and PT Pertafenikki Engineering (KJP JV).

The Tangguh LNG Project, located in remote Bintuni Bay, West Papua, was the largest capital development project ever undertaken in Indonesia and involved the successful delivery of community, local content, environmental and safety performance.

"KBR is proud to continue our longstanding relationship with BP and our joint venture partners, PT Rekayasa Industri and JGC Corporation and PT JGC Indonesia, on the Tangguh LNG expansion. This project represents KBR's ability to bring world-class engineering skills to complex energy projects and follows KBR's 30-year presence and successful track record in the Asia-Pacific region," said Stuart Bradie, KBR President and CEO.

The Tangguh LNG Project is located in Teluk Bintuni, Papua Barat.  Tangguh began production in 2009 and gas from a third LNG train will come from a phased offshore development of new shallow water platforms, new pipelines to shore, new infield pipelines, a new integrated onshore receiving facility and new development wells. Tangguh's capacity is currently 7.6 million tons and is expected to reach 11.4 when the expansion project is completed.

Expected revenue from the contract will be included in the fourth quarter of 2014 backlog of unfilled orders for the Gas Monetization segment.  The contract value was not disclosed.

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