KBR Joint Venture Selected by BP for Two Energy Security Projects in Azerbaijan

Rhea-AI Summary

KBR (NYSE: KBR) and its joint venture partner SOCAR have secured two significant contracts from BP in Azerbaijan. The SOCAR-KBR LLC joint venture will provide detailed engineering design and procurement services for the Sangachal Terminal Electrification (STEL) project and the Shah Deniz compression (SDC) gas field project.

The Sangachal terminal, previously designed by KBR, serves as a crucial connection between Azerbaijan and Europe, supporting the country's transition to national grid supply and emissions reduction. The projects will be executed by SOCAR-KBR's Baku office, where 95% of the team consists of local Azerbaijani professionals, supported by KBR's global expertise.

Positive

• Strategic contract wins strengthen KBR's presence in Azerbaijan's energy sector
• Projects support clean energy transition and emissions reduction objectives
• High local workforce utilization (95%) demonstrates strong regional integration
• Continued trust from BP evidenced by follow-on contracts after successful FEED completion

Negative

• Project values and financial terms not disclosed
• Execution timeline and project completion dates not specified

News Market Reaction

-2.90%

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On the day this news was published, KBR declined 2.90%, reflecting a moderate negative market reaction.

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HOUSTON, July 15, 2025 (GLOBE NEWSWIRE) -- KBR (NYSE: KBR) announced today that its joint venture with SOCAR, SOCAR-KBR LLC, has been awarded two contracts by BP in Azerbaijan – one to support the Sangachal Terminal Electrification (STEL) project, Azerbaijan’s largest oil and gas reception terminal, and another for the Shah Deniz compression (SDC) gas field project.

Under the terms of the contracts, SOCAR-KBR will provide detailed engineering design solutions and procurement services for both the projects. SOCAR-KBR previously completed the project FEED for the STEL project, and the pre-FEED and FEED for the SDC project. This additional work reflects BP’s continued confidence in SOCAR-KBR’s delivery excellence.

“KBR has been delivering world-scale energy solutions in the region for over three decades and these projects mark a significant step in Azerbaijan’s clean energy security objectives,” said Jay Ibrahim, President, KBR Sustainable Technology Solutions. “The Sangachal terminal, which was designed by KBR and serves as a vital link between Azerbaijan and the rest of Europe, will enable the country’s transition to national grid supply and reduce emissions. The Shah Deniz compression project marks the next stage in the evolution of delivering safe and efficient solutions.”

More than 95% of the SOCAR-KBR Baku-based team is composed of Azerbaijani engineers, designers and other professionals. The SOCAR-KBR Baku office will deliver this project with the expertise of local subject matter experts with support from KBR’s global team.

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 38,000 people worldwide with customers in more than 80 countries and operations in over 29 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 future financial performance, project outcomes and demand for the company’s services, 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
Jamie DuBray
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 new contracts did KBR win from BP in Azerbaijan?

KBR's joint venture SOCAR-KBR won two contracts from BP for the Sangachal Terminal Electrification (STEL) project and the Shah Deniz compression (SDC) gas field project in Azerbaijan.

What is the significance of the Sangachal Terminal project for KBR?

The Sangachal Terminal is Azerbaijan's largest oil and gas reception terminal, designed by KBR, serving as a vital link between Azerbaijan and Europe while enabling transition to national grid supply and emissions reduction.

How many local professionals are involved in KBR's Azerbaijan projects?

More than 95% of the SOCAR-KBR Baku-based team consists of local Azerbaijani engineers, designers, and other professionals.

What services will SOCAR-KBR provide for the BP projects?

SOCAR-KBR will provide detailed engineering design solutions and procurement services for both the STEL and SDC projects.

What is KBR's history in Azerbaijan's energy sector?

KBR has been delivering world-scale energy solutions in the region for over three decades, including previous completion of FEED work for both current projects.