Engineering and construction firm, KBR Inc. (KBR - Analyst Report) inked an agreement with the State Oil Company of the Azerbaijan Republic (SOCAR). The contract relates to providing the front-end engineering and design (FEED) services to the Gas Processing Plant (GPP), located in the Oil-Gas Processing and Petrochemical Complex (OGPC) in Azerbaijan.
The contract with KBR is expected to conclude by October 2013, with the total completion of the project taking place in the late 2020’s. The operations pertaining to the contract will be undertaken by KBR’s London based global engineering centers.
The gas processing plant consists of two different sub-plants; a gas processing plant and a refinery plant. The gas processing plant is currently in the FEED phase and carries a production capacity of 10 billion to 12 billion cubic meters annually. However, the refinery plant bears a capacity of 10 million tonnes per year, with a major portion of the production targeted for export.
Last week, KBR was chosen by PT Panca Amara Utama (PAU), with regard to its grassroots ammonia plant in Sulawesi, Indonesia. Per the contract, KBR will provide licensing and engineering services along with proprietary equipment for the plant. The plant, when fully operational, will have a per day capacity of 2000 metric tonnes of Ammonia.
In the same week, KBR entered into yet another agreement with the U.S. Army for its Logistics Civil Augmentation Program (LOGCAP) IV contract. KBR will support the U.S. forces in the kingdom of Bahrain, with its life support and logistics services. The project tenure is estimated to be one year with a four year extendable option. The estimated value is roughly $53.5 million.
KBR currently holds a Zacks Rank #3 (Hold). Other stocks worth a look in the services sector are Global Partners LP (GLP - Snapshot Report), holding a Zacks Rank #1 (Strong Buy). Also, AECOM Technology Corporation (ACM - Analyst Report) and Anixter International Inc. (AXE - Snapshot Report); both carry a Zacks Rank #2 (Buy).