Jan 20, 2016

MESSAGE FROM KBR PRESIDENT E&C EUROPE, EURASIA AND AFRICA

Dear All,
As we are heading into the holiday season across EEA, I would like to thank all our employees in our offices and operations in Baku, Kwidzyn, Leatherhead, Moscow and Svetogorsk for their hard work and dedication during 2015.

I’m very pleased to see that the Zero Harm initiative has been embraced and has been rolled out across the region. It is making a significant impact and we have had very good feedback from our employees, families, partners, clients and communities we work in. This will also be a key focus area in 2016.

One KBR and the KBR Way were launched during the summer and this is something which we will continue to focus on in 2016.

During 2015 we have made a lot of progress with regards to KBR’s three focus areas:
1. Win new work
2. Execute to our commitments
3. Take out unnecessary cost

In the current environment with a sustained low oil price, it is crucial that we focus on all of the three areas and this will set KBR up for success in the longer term.

The move into one location in London has been successful and I would like to thank everyone for the contribution to making this a success.

Since we announced the strategy and restructuring of KBR in December, a lot has happened. The Shah Deniz Phase II project is firing on all cylinders and the feedback from the client is very positive. The Maersk Culzean FEED was completed successfully and KBR have won the detailed design. This is being executed from KBR’s Singapore Office under the leadership of Tim Nethercott as the Project Director, with support from the London Office – this is a very good example of One KBR in action. The Shell EFA for LNG is working well and this has now been expanded to include GTL. We have won the EPC for Johan Sverdrup Utilities and Living Quarter in a JV with Kvaerner for Statoil in Norway. We are working on the early phases of a significant Concrete GBS LNG in cooperation with Kvaerner for a client in Russia. The BG Upstream Alliance is well under way. We have completed the ENI FLNG FEED and have submitted our EPCIC price. We have also recently been awarded the Toaz Ammonia Revamp project in Russia – this is another very good example of the One KBR approach where Technology & Consulting worked closely with E&C EEA.

I’m pleased to say that our Industrial Services operations in Svetogork in Russia and in Kwidzyn in Poland continue to perform strongly and are enjoying repeat business from clients. Both operations are ambassadors for Zero Harm and we can learn a lot from them as we are moving into more work in fabrication yards and in the field across EEA region.
In March we announced that we have formed a joint venture company for engineering focussed on upstream, for brownfield and greenfield, in Baku. The name of the Company is SOCAR KBR LLC and we had our first board meeting on 29th of September. We can see a lot of opportunities for the next couple of decades in the Caspian, and SOCAR KBR LLC is a key enabler for our future in Azerbaijan with SOCAR, BP and Total and their partners.

The business environment in the next 12-18 months will be challenging, but I see a lot of opportunities for KBR in the EEA region and if we all work as a team across the three focus areas we will be successful.

I would like to thank everybody for their hard work and support in 2015 and wish you a happy holiday season and a successful 2016.