KBR Supplier Awarded Feasibility Study on New Liberian Refinery

KBR Comment on Supply Chain

Equipment and materials essential to our business are obtained from a variety of sources throughout the world. The principal equipment and materials we use in our business are subject to availability and price fluctuations due to customer demand, production capacity, and market conditions. We monitor the availability and price of equipment and materials on a regular basis. Our procurement department seeks to leverage our size and buying power to ensure that we have access to key equipment and materials at the best possible prices and delivery schedules. While we do not currently foresee any significant lack of availability of equipment and materials in the near term, the availability of these items may vary significantly from year to year and any prolonged unavailability or significant price increases for equipment and materials necessary to our projects and services could have a material adverse effect on our business.

KBR Awarded Feasibility Study on New Liberian Refinery

(June 15, 2016) – KBR, Inc. announced that it had been awarded a bankable feasibility study (BFS) contract by ECOWAS Refinery Liberia Limited (ERLL) for the development of a 100 Mbpd refinery located in Buchanan, Liberia.

Under the terms of the contract, KBR will provide a market study, refinery configuration development, and environmental, social, and health impact assessment (ESHIA) study. This work is expected to be performed over five months with KBR configuring the optimal refinery configuration and developing the financial model, including capital and operational cost estimates supported by China Huanqiu Contracting and Engineering Corporation (HQC), a subsidiary of China National Petroleum Corporation (CNPC). HQC is advising in tailoring the BFS product for potential future phase Chinese investment.

“KBR is delighted to be able to assist ERLL in the formative stages of this project bringing together the knowledge and capabilities of the One KBR approach,” Jan Egil Braendeland, Executive Vice President of Global Sales said.

Chief Tony Izubundu Chinyere, Executive Vice Chairman & Founder of ERLL said “This is an important milestone to progress the development of the refinery project for Liberia. With the engagement of KBR for the bankable feasibility study, a solid basis for the project will be established.”

Revenues associated with this contract, which were not disclosed, will be booked into backlog in the second quarter of 2016.