KBR Awarded Canadian Gasifer Unit Construction and Fabrication Services Contract

abarrelfullabarrelfull wrote on 01 Dec 2012 10:27

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November 26, 2007

KBR (NYSE:KBR) announced today that it has been awarded a $225 million (CAD) dollar contract for construction and fabrication of a gasification unit by Lurgi AG, an Air Liquide subsidiary, and a leading international company operating in the field of process engineering and plant contracting. Lurgi is the engineering, procurement and construction contractor to North West Upgrading. KBR's scope of work will include the fabrication of nearly 100 modules and will peak at approximately 400 personnel performing field construction and module service work on this 30-month project.

The project, located near Edmonton, Alberta, is slated to begin in 2008, with field construction services for the Gasifer unit planned to start in summer 2008, and module fabrication expected to start in mid 2009. Mechanical completion of the Gasifer unit is planned for the first half of 2011.

The North West Upgrading project will have an initial design capacity to process 77,000 barrels of oil sand's SYNBIT/DILBIT mix bitumen feed per day. Two subsequent phases, each of identical capacity, are planned for implementation in the future.

KBR was sole source selected for the contract, based on a long-standing record of accomplishment performing operations in Alberta oil sands development projects.

"This award is a testament of KBR's continued commitment to deliver best in class construction services in the Canadian Oil Sands market. Additionally, this project further demonstrates KBR's commitment to growing its service business in North America," said David Zimmerman, President of KBR, Services.

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