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KBR Arm Wins Contract for BP's Greater Tortue Ahmeyim Project

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KBR, Inc.’s (KBR - Free Report) U.K. unit has received a contract from oil giant BP p.l.c. (BP - Free Report) for the latter’s upcoming phases of the Greater Tortue Ahmeyim project, located at the maritime border of Senegal and Mauritania.

Per this Pre-FEED Services contract, KBR is entitled to support BP for further development of the Tortue field beyond Phase 1. This move will enhance the project’s capacity to deliver additional gas from an ultra-deep-water subsea system, tied back to mid-water gas processing platforms. The gas will then be transferred to pre-treatment and offshore Liquefied Natural Gas (“LNG”) facilities at the established Phase 1 hub.

KBR has already been in the LNG industry for more than 40 years and has been contributing nearly one third of the world's total LNG production. Recently, KBR  has collaborated with Baker Hughes, a GE company to use the latter’s proven gas turbine driver technologies, featuring LM2500+G5 and LM6000PF gas turbines, for its standardized mid-scale LNG design.

On Sep 17, 2018, KBR had partnered with ConocoPhillips (COP - Free Report) , a major global exploration and production (E&P) company, in a bid to utilize the latter’s Optimized Cascade technology in LNG plants.

KBR’s Hydrocarbons Services, accounting for 23.5% of revenues, is expected to benefit from selective opportunities in downstream petrochemical and ethylene projects, and a growing number of small-scale LNG projects in North America.

Hydrocarbon services backlog ($1.9 billion as of Dec 31, 2018) has remained steady over the last five quarters. Of the backlog, 75% represents service businesses that comprise high-end technical consultancy, pre-FEED, FEED, PMC, and sustaining capital construction services and maintenance.

Coming to price performance, shares of KBR have gained 29% year to date, outperforming the S&P 500 composite and its industry’s average growth of 14.3% and 26.5%, respectively. The contract winning spree underscores KBR's strong ability to safely and efficiently deliver projects in operating facilities.



Zacks Rank


Currently, KBR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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