Chevron Awards KBR Joint Venture FEED Contract for Australian LNG Project

KBR and its joint venture partners have been awarded a Front End Engineering and Design (FEED) contract and option for an Engineering, Procurement and Construction Management (EPCM) contract for the Greater Gorgon Downstream LNG Project. The Downstream project will include two LNG processing trains, each with a capacity of 5 million tonnes per annum (MTPA) to be located on Barrow Island, Western Australia. The work will be undertaken by the Kellogg Joint Venture -- Gorgon (KJVG), an unincorporated joint venture, comprising KBR (30%), JGC Corporation (30%), Hatch (20%) and Clough (20%).

"The award of the FEED contract to the KJVG team continues our long-standing project execution experience on Australian LNG projects," said Andy Lane, COO of Halliburton. "Chevron is a valued client of ours, and we look forward to helping them achieve the development of this grassroots LNG facility in Western Australia."

The FEED contract is expected to be followed by the EPCM contract when the project receives Final Investment Decision (FID) approval, which is expected in mid-2006. KJVG will be executing the work as an integrated team comprised of members from all of the joint venture partners.

"The monetization of the Greater Gorgon gas reserves will provide significant economic benefits to Australia and the state of Western Australia," said Lou Pucher, Senior Vice President of KBR's Energy & Chemicals division. "The KJVG team also recognizes the importance and sensitivity of the unique Barrow Island environment, and is committed to continuing its successful track record of LNG projects in Western Australia."

JGC Corporation is an international engineering and construction company based in Yokohama, Japan, having multiple operating centers and executing large scale projects world-wide. JGC is currently executing projects in Nigeria, Algeria, Libya, Egypt, Saudi Arabia, Oman, Abu Dhabi, Qatar, China, Australia, and other countries. Established in 1928, JGC has a strong background in lump-sum turnkey operations of both hydrocarbon and non-hydrocarbon related projects, with annual sales turnover in excess of $3 billion.

Clough is one of Australia's largest multi-disciplinary engineering and construction groups. Clough operates globally in industry sectors such as onshore and offshore oil and gas, petrochemicals, minerals, infrastructure and property and has a significant capability in project management and engineering.

Hatch is a leading global consulting, engineering, technologies, information systems, and project and construction management organisation. Hatch provides a full range of technology-driven, value-adding solutions and services to clients in the mining, minerals, metals, manufacturing, infrastructure and energy sectors through a network of 80 permanent offices worldwide.

KBR is a global engineering, construction, technology and services company. Whether designing an LNG facility, serving as a defense industry contractor, or providing small capital construction, KBR delivers world-class service and performance. KBR employs more than 60,000 people in 43 countries around the world.

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