KBR Awarded Engineering Contract for SMOE Maersk MOG Halfdan Phase IV Project

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July 15, 2008

KBR (NYSE:KBR) announced today that it has been awarded a $16.5 million contract for detailed engineering for the SMOE Maersk Olie Gas (MOG) Halfdan Phase IV Project.

The award marks the third project MOG has awarded the combined KBR and SMOE team. KBR will be responsible for designing a new platform as part of the continued development of the Halfdan field located in approximately 140 feet of water 120 miles west of Esbjerg, Denmark. The platform will be constructed at SMOE's Singapore fabrication yard and transported to the North Sea upon completion.

"KBR is delighted to continue working with SMOE to develop a proven, mutually beneficial relationship in offshore production facility design and engineering," said John Rose, President, KBR Upstream. "This contract reinforces our continued presence as a safe, world class offshore contractor in the Asia Pacific region. This region is on the threshold of undertaking several offshore projects and this award helps position KBR to gain a major share of the business with an established presence along with fabricator relationships in the region."

"This contract further demonstrates that SMOE and KBR are a winning combination," said Ho Nee Sin, Managing Director, SMOE. "KBR and SMOE have worked together on six projects under similar arrangements in the last seven years. KBR was able to provide valuable engineering to SMOE in support of its engineering, procurement and construction contractual obligations."


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