KBR Wins FEED Contract From Oman LNG, Boosts Backlog
Zacks Investment Research | May 16, 2019 04:41AM ET
KBR, Inc. (NYSE:KBR) has won a Front End Engineering Design (“FEED”) contract from Oman LNG L.L.C for the latter’s de-bottlenecking project at Sur, Sultanate of Oman.
Per the deal, KBR will provide FEED services including licenser and vendor management, as well as associated services to increase production at Oman LNG’s world-class plant situated in Sur. KBR will help the project team to manage overall execution, including supply, and ensure overall compliance and safety of the project.
Meanwhile, the contract fortifies Oman LNG's strong commitment toward sharing knowledge and boosting staff competency to deal with such complex projects, while enhancing in-country value initiatives.
Being a pioneer in the LNG industry for more than four decades, KBR has contributed nearly one-third of the world's total LNG production. It remains committed to boost global LNG production for environmental reasons going forward. The company’s Energy Solutions unit, accounting for 20.3% of revenues, is expected to benefit from the growing number of LNG projects and solid backlog level of $13.6 billion as of Mar 31, 2019.
Of the total backlog, 75% represents service businesses that comprise high-end technical consultancy, pre-FEED, FEED, PMC, and sustaining capital construction services and maintenance.
Recent FEED Contract Win
On May 2, 2019, KBR received a reimbursable cost FEED and Engineering, Procurement and Construction contract from a Tier 1 International Oil Company to support the installation and construction of terminal facilities, not including storage tanks, to handle Permian Basin crude oil in west Texas and condensate for transport to the Gulf Coast.
Notably, shares of KBR have gained 49.1% year to date, broadly outperforming its Zacks Investment Research
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