KBR to quit most energy projects and focus on government contracts

Engineering, procurement, and construction (EPC) company KBR has reportedly said it will exit most of its liquefied natural gas (LNG) construction and other energy projects, and focus on government contracts and technology businesses.

The company cited the Covid-19 pandemic as the prime reason behind accelerating the decision to leave the fixed-contract energy projects.

Reuters reported that KBR chief executive Stuart Bradie wrote to employees stating that the company will no longer engage in ‘lump sum, blue collar construction services’.

According to the news agency, KBR held contracts for engineering and construction services for several LNG projects. These include Freeport LNG in Texas, Pieridae Energy’s proposed Goldboro LNG facility in Canada, and Glenfarne’s Magnolia LNG project in Louisiana.

Bradie told an investor webcast last week that the energy business likely would be ‘marginally profitablle’ this year and noted that about 85% of the company’s FY 2020 earnings would come from government business.

KBR provides professional services and technologies across the asset and programme lifecycle within the government solutions and energy sectors. It employs over 37,000 people worldwide.

The company has customers in more than 80 countries and operations in 40 countries across three global businesses, namely government solutions, technology solutions, and energy solutions.

Last week, KBR signed a memorandum of understanding (MoU) with L&T Hydrocarbon Engineering for refinery and petrochemical projects.

Last month, KBR secured a contract to provide energy efficiency opportunities study at Gladstone LNG (GLNG).

In December last year, KBR secured a contract to provide the project management consulting services for Nigerian National Petroleum Corporation (NNPC).