KBR Joint Venture Awarded Gorgon Project EPCM Contract

KBR (NYSE: KBR) announced today that Kellogg Joint Venture Group (KJVG) has been awarded by Chevron Australia Pty Ltd an estimated AUD ~ 2.7 Billion contract to Engineer, Procure and Construction Manage (EPCM) the LNG downstream and logistics portion of the multi-billion dollar Chevron-operated Gorgon LNG Project.

KJVG, a KBR led Joint Venture consisting of partners JGC, Clough and Hatch, will execute and construct the Liquefied Natural Gas (LNG) facility on Barrow Island, consisting of three 5 million tonne per annum (MTPA) LNG trains, gas processing and treatment facilities, product storage and offloading, complete offsites, utilities and accommodations. The EPCM contract also includes a 300TJ/d domestic gas plant. The design of the facility features improvements in greenhouse gas emissions performance including improved waste heat recovery and the provision of facilities for the injection of reservoir carbon dioxide deep into the subsurface.

The EPCM effort is a modular construction strategy to minimize impact on the island during the construction phase and is being conducted from two main operating centers located in Perth, Australia and London, UK with support from global centers in USA, Singapore, Indonesia and Japan. KJVG plans to utilize several fabrication yards across South East Asia & Australia to support the planned 250,000 tons of LNG modules. Along with the above unique and one of kind design items, KJVG will implement a comprehensive Quarantine management plan for Barrow Island.

“Our continued involvement with this large, modularized grassroots LNG project demonstrates KBR’s commitment to providing our customers with leading LNG project execution and allows KBR to build on its LNG expertise and experience in Australia,” said John Rose, Group President, KBR Hydrocarbons. “We are committed to Chevron and its partners and look forward to working closely with Chevron to ensure the successful execution of the Gorgon Project.”

The Gorgon Project plans to develop the Greater Gorgon gas fields, located between 130km and 200km off the north-west coast of Western Australia. The Greater Gorgon gas fields contain resources of about 40 trillion cubic feet of gas, Australia's largest-known gas resource. Chevron is operator of the Project with a 50% interest, and ExxonMobil and Shell each hold 25%. KJVG, formed as a partnership between KBR E&C Australia Pty Ltd, JGC Corporation, Clough Projects Australia Pty Ltd and Hatch Associates Pty Ltd Group, completed the updated onshore facilities Front End Engineering and Design (FEED) and execution planning earlier this year. The joint venture allows KBR to capitalize on the strengths of each party to provide the best engineering, procurement and construction personnel and experience in the market.

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services and civil infrastructure sectors. For more information, visit www.kbr.com.

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