KBR Awarded EPC Contract for Sonatrach Skikda LNG Project.

HOUSTON -- KBR (NYSE: KBR) today announced it has been awarded the engineering, procurement and construction (EPC) contract for the Sonatrach Skikda LNG project, to be constructed at Skikda, Algeria. The contract has an approximate value of USD 2.8 billion.

In addition to performing the

EPC work for the 4.5 million metric tons per annum LNG train along with associated LPG and condensate recovery, KBR will execute the pre-commissioning and commissioning portion of the contract. Work is expected to begin in July and will be executed in Houston prior to moving to the Skikda Site.

The award demonstrates KBR's ability to execute major, grass-roots LNG projects and its commitment to Sonatrach and the country of Algeria. "KBR is dedicated to continuing its long-term relationship with Sonatrach in Algeria to achieve their goals for increased LNG production," said John Rose, executive vice president, KBR. "Through a flexible and innovative contracting approach, Sonatrach has been able to move forward with this project in a market where many projects are delayed."

Sonatrach Downstream executive vice president Dr. Abdelhafid Feghouli stated, "The new LNG train at Skikda will enable Sonatrach to increase and recapture its LNG production. This project award also demonstrates our commitment to the LNG business and to the Skikda community."

KBR, alone or with its joint venture partners, has designed and constructed more than half of the world's operating LNG production capacity and has designed more than half of the LNG receiving terminals in operation outside of Japan.

KBR is a global engineering, construction and services company supporting the energy, petrochemicals, government services and civil infrastructure sectors. The company offers a wide range of services through its Energy and Chemicals, Government and Infrastructure, and Ventures business segments. For more information, visit www.kbr.com.