KBR Awarded Transformational Oil Development Project in Iraq
Rhea-AI Summary
KBR (NYSE: KBR) was awarded an Integrated Field Management Services (IFMS) contract by Basra Oil Company to develop the Majnoon Oil Field in southern Iraq on Feb. 23, 2026. Majnoon holds estimated reserves of over 38 billion barrels. KBR will provide upstream engineering, operations management, maintenance, subsurface drilling, reservoir engineering, and deploy AI and digital technologies to enhance production and modernize facilities. The project plans an initial in-country workforce of approximately 2,000 and emphasizes local training, knowledge transfer, and community initiatives while leveraging global engineering centers.
Positive
- Awarded IFMS contract for Majnoon Oil Field with ~38 billion barrels reserves
- Initial in-country workforce of approximately 2,000 personnel
- Scope includes AI and digital technologies for reservoir optimization and modernization
- Strengthens KBR's multi-year engagement across Iraq's energy sector
Negative
- No contract value or revenue guidance disclosed, leaving financial impact unspecified
- Timing of production increases or cash flows from the project is not provided
Key Figures
Market Reality Check
Peers on Argus
KBR was down 0.74% pre-news, while key engineering & construction peers like FLR (+1.02%), PRIM (+1.88%), IESC (+1.54%) and DY (+2.77%) were positive, suggesting stock-specific dynamics rather than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 19 | Dividend declaration | Positive | +2.1% | Regular quarterly dividend of <b>$0.165</b> per share announced. |
| Feb 18 | Long-term contract | Positive | +2.2% | Strategic 10-year maintenance services contract with Petro Rabigh in Saudi Arabia. |
| Feb 09 | Defense contracts | Positive | +1.4% | Two Space Force task orders totaling <b>$103 million</b> over three years. |
| Feb 05 | Space Force award | Positive | -1.3% | <b>$77 million</b> task order to advance digital engineering and communications. |
| Feb 03 | Air Force contract | Positive | -2.1% | New IDIQ contract with <b>$149 million</b> ceiling for AFLCMC armament work. |
Recent news has been mostly positive contract wins and dividends, with 3 price reactions aligning positively and 2 diverging despite favorable headlines.
In the last weeks, KBR announced multiple U.S. defense and space contracts and a regular dividend. On Feb 3, it secured an AFLCMC contract with a $149 million ceiling over seven years. On Feb 5, it won a $77 million Space Force task order, followed by $103 million in additional Space Force work on Feb 9. A $0.165 quarterly dividend was declared on Feb 19. Today’s large Iraq oil-field award extends this pattern of sizable, diversified contract wins.
Market Pulse Summary
This announcement details a major Integrated Field Management Services mandate on Iraq’s Majnoon field, which holds over 38 billion barrels of estimated reserves and an initial workforce of roughly 2,000 personnel. It extends a recent run of sizable contract wins and a regular $0.165 dividend. Investors may watch how this long-term, complex upstream engagement complements recent U.S. defense and space awards and whether execution supports margin and backlog stability over time.
Key Terms
digital engineering technical
AI-generated analysis. Not financial advice.
HOUSTON, Feb. 23, 2026 (GLOBE NEWSWIRE) -- KBR (NYSE: KBR) announced today that it has been awarded a major contract by Basra Oil Company (BOC) to provide Integrated Field Management Services (IFMS) for the gigantic Majnoon Oil Field. Located in southern Iraq, Majnoon is one of the world’s largest oil fields, with estimated reserves of over 38 billion barrels.
Under the IFMS contract, KBR will provide comprehensive upstream engineering, project and operations management, and maintenance services to enhance crude production, modernize field facilities, and implement advanced AI and digital technologies to optimize reservoir performance in a safe and sustainable manner. KBR’s scope of services includes subsurface drilling and reservoir engineering to ensure an integrated approach towards the development, operation, and maintenance of this strategic oil asset in Iraq.
“This award underscores KBR’s deep and diverse technical capability, including upstream operational services, and decades long commitment to Iraq,” said Jay Ibrahim, President, KBR Sustainable Technology Solutions. “Oil field development projects of this scale and complexity require a strategic and trusted high-value provider with proven in-country experience, disciplined execution, and a strong safety culture. We are honored to support BOC in advancing Iraq’s energy ambitions and delivering sustained long term value.”
The project is expected to generate significant local employment across Iraq’s engineering, construction, and oil field services industries, with an initial estimated work force of approximately 2,000 in-country personnel. KBR remains committed to knowledge-transfer and training for Iraq’s dynamic engineering sector and will support the execution of this project through a combination of in-country teams and global engineering centers, ensuring strong local engagement while leveraging international best practices in project delivery, digital engineering and operational excellence. Throughout the execution phase, KBR will remain committed to supporting the development of local community initiatives, with an emphasis on best practices in engineering, safety, and technical skill development.
The strategic award strengthens KBR’s engagement across Iraq’s energy sector built on years of delivering value through collaboration, transparency, consistency, and innovation. From assisting the Iraqi Ministry of Planning to develop and implement a multifaceted Iraq Master Plan, undertaking multi-year complex maintenance programs across some of the largest oil fields such as Rumaila, to identifying practical strategies to monetize flared natural gas, KBR is positioned as a trusted high-value provider to contribute towards Iraq’s economic, industrial, and social growth for years to come.
About KBR
We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 36,000 people worldwide with customers in more than 85 countries and operations in over 28 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
Visit www.kbr.com
Forward Looking Statements
The statements in this press release that are not historical statements, including statements regarding KBR’s Integrated Field Management Services in Iraq, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks, uncertainties and assumptions, many of which are beyond the company’s control, that could cause actual results to differ materially from the results expressed or implied by the statements. These risks, uncertainties and assumptions include, but are not limited to, those set forth in the company’s most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks and other U.S. Securities and Exchange Commission filings, which discuss some of the important risks, uncertainties and assumptions that the company has identified that may affect its business, results of operations and financial condition. Due to such risks, uncertainties and assumptions, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
For further information, please contact:
Investors
Rachael Goldwait
Vice President, Investor Relations
713-753-5082
Investors@kbr.com
Media
Philip Ivy
Vice President, Global Communications and Marketing
713-753-3800
MediaRelations@kbr.com
FAQ
What did KBR announce about the Majnoon Oil Field on Feb. 23, 2026 (NYSE: KBR)?
How large are the reserves at Majnoon and why does it matter for KBR (KBR)?
How many local jobs will the Majnoon contract create for Iraq under KBR (NYSE: KBR)?
What services will KBR provide under the IFMS contract for Majnoon (KBR)?
Did KBR disclose the financial value or revenue impact of the Majnoon contract (KBR)?
