KBR Selected to Execute Two FLNG Studies for Höegh LNG

Project to Deliver Optimum Solution to bring Gas to Market

HOUSTON - Tuesday, June 26th 2012 [ME NewsWire]

(BUSINESS WIRE)-- KBR (NYSE: KBR) announced today that it was selected as Höegh’s preferred engineer to execute pre-FEED studies for two of its projects off the coast of Israel and offshore Australia.

KBR will provide the pre-FEED study for the King liquefied natural gas-floating production storage and offloading (LNG-FPSO) facility currently being evaluated for Noble Energy's giant Tamar gas field off the coast of Israel. KBR has developed FPSOs that are in use worldwide and is recognized as one of the world's leading providers of onshore LNG plants and FPSOs.

Höegh LNG awarded KBR a second FLNG pre-FEED study for an unnamed project offshore Australia. The four-month pre-FEED is intended to provide a Total Installed Cost (TIC) estimate for a two mtpa FLNG facility to enable further evaluation of the project. KBR will perform a cost estimate study, taking Höegh’s existing generic LNG FPSO FEED study and adapting the capex cost for the operator’s field-specific basis of design. Should the project economics prove viable, FEED could start as early as 4Q 2012.

Both projects will be performed in KBR’s London Operating Center, utilizing the company’s substantial and growing FLNG engineering capability spread over the London, Houston and Perth offices.

"We are excited about providing the initial engineering work for an innovative LNG FPSO solution to support Höegh LNG's already-developed concept,” said Roy Oelking, KBR Group President, Hydrocarbons. “We are pleased to work with Höegh LNG, Daewoo Shipbuilding & Marine Engineering Co., and the Tamar field owners in developing one of the first LNG FPSOs to come to market. KBR has been working with Höegh LNG since 2010 and we are confident that, together, we will help Höegh deliver the optimum solution for bringing Tamar gas to the market."

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, industrial, and commercial markets. For more information, visit www.kbr.com.

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