KBR and its wholly owned subsidiary Granherne announced today that they have signed an agreement to form an alliance with Subsea 7 to deliver Concept and Front End Engineering and Design (FEED) services to the global offshore oil and gas industry.

The alliance is a co-operation agreement between the companies where Granherne will support Subsea 7 on concept and FEED studies and Subsea 7 will support Granherne with subsea engineering and technology. The alliance will operate on a global basis using the existing resources of these two market-leading companies.

KBR's and Granherne's expertise in field development planning, concept evaluation and FEED will complement Subsea 7's subsea project management and engineering experience and the application of technology and know-how to enable improved cost-benefit evaluation for clients. The alliance will be able to engage early with clients to provide them with the most cost-effective solutions during the important concept evaluation phase of a project.

The alliance provides the opportunity for KBR and Subsea 7 to collaborate in the execution phase of offshore projects. The combined experience and capabilities has the potential to deliver the full scope of any project. The decision to collaborate will be on a project-by-project basis and will be based on a clear and differentiated value proposition to the client.

Stuart Bradie, KBR President and CEO, said: "This alliance combines the complementary skill-sets and know-how of two leading offshore contractors working together to ensure a greater contribution at the early stage of projects. Together, both companies can ensure that offshore oil and gas development becomes more economic and we look forward to continuing our already strong working partnership with Subsea 7."

Jean Cahuzac, Subsea 7 Chief Executive Officer, said: "This alliance will drive improvements in the offshore market with two leading independent companies working together to deliver greater value for clients worldwide. I look forward to strengthening our relationship with KBR through this alliance which provides the opportunity for early engagement in the project lifecycle when value creation can be optimised and where we can introduce enabling subsea technologies and know-how at the critical concept evaluation stage. This is key to assisting the offshore oil and gas industry to adapt to the lower oil price environment."

About KBR, Inc.

KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing approximately 25,000 people worldwide with customers in more than 70 countries and operations in 40 countries across three distinct global businesses:

- Technology & Consulting, including proprietary technology in refining, ethylene, ammonia and fertilizers, and gasification; and niche consulting and know-how through subsidiaries Granherne, Energo and GVA
- Engineering & Construction, including Offshore Oil & Gas; Onshore Oil & Gas; LNG/GTL; Refining; Petrochemicals; Chemicals; differentiated EPC, and Industrial Services
- Government Services, including program management and long term annuity contracts

KBR is proud to work with its customers across the globe to provide technology, value-added consulting services, integrated EPC delivery and Long Term Industrial Services to ensure consistent project delivery with predictable results. At KBR, we deliver.

About Subsea 7

Subsea 7 S.A. is a leading global contractor in seabed-to-surface engineering, construction and services to the offshore energy industry. It provides technical solutions to enable the delivery of complex projects in all water depths and challenging environments.