KBR Inc. (KBR - Analyst Report) announced that it has received an engineering and procurement contract (EP&C) from BP Exploration for the Shah Deniz Stage 2 project. The financial details of the contract were not disclosed, but KBR has booked the contract into its backlog of 2014. This contract follows KBR’s successful completion of the project’s front end engineering and design (FEED) contract.
The Shah Deniz gas field is the largest natural gas field in Azerbaijan. It is situated in the South Caspian Sea, off the coast of Azerbaijan, approximately 70 kilometres (43 miles) southeast of Baku. This gas field, discovered in 1999, is to supply gas directly to Europe. The Shah Deniz field is primarily operated by BP which has a 25.5% share in it.
As per the contract, KBR will chiefly provide engineering design and procurement support services for an offshore complex (comprising two bridge-linked fixed jacket platforms) and an onshore gas processing facility. The onshore facility includes two gas processing trains each with a capacity of 900 mmscf/d and condensate processing facilities with about 105 mbd capacity. These are located next to the existing Shah Deniz Stage 1 facilities at Sangachal Terminal.
The engineering and procurement work is expected to begin in Jan 2014 and continue till 2018.
KBR is an industrial construction and engineering facility provider, offering services to hydrocarbon, chemical and petrochemical industries. KBR has a 60-year old legacy of providing construction and maintenance services.
KBR currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the engineering and construction sector worth considering at the moment include VSE Corp. and Enersys (ENS - Snapshot Report) both carrying a Zacks Rank #1 (Strong Buy), and Quanta Services, Inc. with a Zacks Rank #2 (Buy).