) announced that it has received an engineering and procurement
contract (EP&C) from BP Exploration for the Shah Deniz Stage
2 project. The financial details of the contract were not
disclosed, but KBR has booked the contract into its backlog of
2014. This contract follows KBR's successful completion of the
project's front end engineering and design (FEED) contract.
The Shah Deniz gas field is the largest natural gas field in
Azerbaijan. It is situated in the South Caspian Sea, off the
coast of Azerbaijan, approximately 70 kilometres (43 miles)
southeast of Baku. This gas field, discovered in 1999, is to
supply gas directly to Europe. The Shah Deniz field is primarily
operated by BP which has a 25.5% share in it.
As per the contract, KBR will chiefly provide engineering
design and procurement support services for an offshore complex
(comprising two bridge-linked fixed jacket platforms) and an
onshore gas processing facility. The onshore facility includes
two gas processing trains each with a capacity of 900 mmscf/d and
condensate processing facilities with about 105 mbd capacity.
These are located next to the existing Shah Deniz Stage 1
facilities at Sangachal Terminal.
The engineering and procurement work is expected to begin in
Jan 2014 and continue till 2018.
KBR is an industrial construction and engineering facility
provider, offering services to hydrocarbon, chemical and
petrochemical industries. KBR has a 60-year old legacy of
providing construction and maintenance services.
KBR currently has a Zacks Rank #3 (Hold). Better-ranked stocks
in the engineering and construction sector worth considering at
the moment include
) both carrying a Zacks Rank #1 (Strong Buy), and
Quanta Services, Inc
) with a Zacks Rank #2 (Buy).
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