KBR Awarded Veba Combi Cracker License and Engineering Services Contract in Cambodia

  KBR Awarded Veba Combi Cracker License and Engineering Services Contract in
  Cambodia

Business Wire

HOUSTON -- January 17, 2013

KBR (NYSE: KBR) today announced it was awarded a contract by Cambodian
Petrochemical Co. Ltd (CPC) to provide licensing and engineering services for
the Veba Combi Cracker (VCC) Unit to be implemented in the Kampong Som
Petrochemical Industrial Zone of Cambodia. Tianjin Petrochemical Engineering
Design Co. LTD. (TPED), the EPC Contractor for the Unit, executed the
agreements on behalf of CPC.

Under the terms of the contract, KBR will provide License and Basic
Engineering services for the 1.2 MMTPA VCC Unit that will process refinery
vacuum residues into high value naphtha and Euro 5 diesel products.

“The VCC technology was selected after careful evaluation of the process. The
high residue conversion and finished products quality will significantly
improve the economics of our facility,” said Li Chengchun, Chief Executive
Officer of CPC. “VCC can process a wide range of residues and fuel oil which
greatly enhances our crude flexibility and had a big influence on the
selection of our refinery configuration.”

“The EPC contractor is critical to the successful implementation of a new
technology.” said Jiang Huadong, General Manager, TPED. ”TPED is committed to
build this unit in accordance with CPC’s quality, schedule, and cost
requirements.”

“We are pleased to be awarded our fourth license since acquiring the right to
license VCC in 2010. The other three units are under construction,” said John
Derbyshire, President, KBR Technology. “I look forward to working with CPC and
TPED as we embark on this important project.”

CPC is the first refinery in Cambodia with a crude capacity of 5 MMTPA
invested by Cambodian National Petroleum Authority, Cambodian HKT Special
Economic Zone Co. Ltd, and Hong Kong Diamond Industry Co. Ltd.

China Perfect Machinery Industry Corp., Ltd. (SINOMACH,
www.chinaperfect.com.cn) will build this refinery that is scheduled to start
up in 2015, and expected to greatly promote Cambodia’s economic development.
TPED (www.tped.cn) is a subsidiary of SINOMACH and a Class A certified design
institute that provides engineering design and EPC services for energy
companies in China.

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.

Contact:

KBR
Zac Nagle, 713-753-5082
Vice President, Investor Relations and Communications
Investors@kbr.com
or
Marianne Gooch, 713-753-3800
Director, Corporate Communications
Mediarelations@kbr.com
 
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