KBR Inc. (KBR) was recently conferred with topsides front end engineering and design (FEED) contract from Maersk Oil for developing the Culzean Project located in the North Sea. The financial terms of the deal remain undisclosed. However, it will be recorded in the second-quarter 2014 backlog of the Hydrocarbons segment of the company.
The standalone facility is designed to aid the production of the Culzean discovery. Culzean is an ultra high-pressure, high-temperature gas condensate field. The facility will have three bridge-linked platforms- wellhead platform, central processing platform and living quarters. The field is located nearly 145 miles East of Aberdeen in the UK zone of the Central North Sea. This project is being developed by Maersk Oil with UK based JX Nippon Oil & Gas Exploration Corporation and Britoil (BP) as the co-venturers.
The scope of the contract requires KBR to provide the topsides FEED for all the three platforms of the facility. Apart from this, following the FEED, the company will have an option to provide the detailed design for these platforms. The company can further take part in the fabrication phase by rendering services for follow-on engineering competency for the project.
Previously, KBR provided services to Maersk Oil for their Dan and Halfdan projects that were located in the Danish zone of North Sea. This project while significantly beneficial for both the entities is also likely to be an asset for UK as the Culzean is expected to have the potential to support as much as 5% of UK’s aggregated gas consumption by 2020 – 2021.
KBR’s hydrocarbon segment provides services ranging from pre-feasibility studies to front-end engineering design through construction and commissioning of process facilities in both remote and developed areas around the world.
KBR currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the sector include Emcor Group Inc. (EME), Sterling Construction Co. Inc. (STRL) and Tutor Perini Corporation (TPC). All three carry a Zacks Rank #2 (Buy).
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