Chevron Awards KBR FEED Contract for Gorgon Project

KBR announced that Kellogg Joint Venture Group (KJVG) has been awarded a Work Authorization by Chevron Australia Pty Ltd for approximately AUD $300 million to finalize front end engineering and design (FEED) for the Chevron-operated Gorgon Project.

Through KJVG, KBR is leading the design of the Liquefied Natural Gas (LNG) facility on Barrow Island, which will consist of three, 5 million tonne per annum (MTPA) LNG trains. The FEED also includes a 300TJ/d domestic gas plant. The FEED, including the accelerated domestic gas scope, continues to be conducted from two Operating Centers, located in London, UK and Perth, Australia.

"Our continued involvement with this world class LNG project demonstrates KBR’s commitment to providing our customers with leading LNG and offshore engineering and allows KBR to further increase its LNG expertise and experience in the Asia Pacific region," said John Rose, KBR’s President, Upstream. "We are committed to Chevron and the Gorgon Project and look forward to working closely with our Joint Venture Partners in KJVG and 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 northwest 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 was formed as a partnership between KBR E&C Australia Pty Ltd, JGC Corporation, Clough Projects Australia Pty Ltd and Hatch Associates Pty Ltd Group in January 2005 and was awarded a Gorgon Project downstream FEED Engineering Procurement and Construction Management (EPCM) contract in July that 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.