Press Release

Houston, Texas - October 16, 2014 - KBR Inc. (NYSE: KBR) announced today that the KD Consortium, consisting of KBR and Daewoo Shipbuilding & Marine Engineering Company, Ltd (KSE: DSME), has been awarded a front end engineering design (FEED) contract by Eni East Africa SpA for a floating liquefied natural gas (FLNG) facility for the Coral South Development Project located in Mozambique.

With the award, the KD consortium will be one of three consortia competing for the engineering, procurement, construction, installation and commissioning (EPCIC) contract to build the new floating LNG facility for Eni East Africa and its partners to develop the hydrocarbon discovery in the Rovuma Basin in Mozambique.

Only one consortium will be chosen to take the project to the EPCIC phase. Three important milestones of this combined FEED-EPCIC competition are: FEED activities started in May 2014. FEED completion date is set to be end of April 2015. EPCIC offer submission is foreseen by end of May 2015.

"Developing a cost-effective solution for the first FLNG vessel in Mozambique was the rationale for developing the KD consortium," said Stuart Bradie, KBR President and CEO. "The consortium allows us to leverage the strength of both companies to provide the client the best choice for the EPCIC portion of the project."

The KD Consortium will provide the FEED for the Topsides, Hull and Subsea for the Floating LNG facility. The Topsides and Turret are being designed in KBR's Leatherhead office while the hull and marine system are being engineered in DSME's facility in Seoul, South Korea.

The FLNG facility will be a turret moored double-hull floating vessel, on which gas receiving, processing, liquefaction, and offloading facilities will be mounted together with LNG and condensate storage.

Eni's Coral South Development Project is located in the deep waters of the Rovuma Basin, which straddles Mozambique's Northern border with Tanzania. Coral South is situated approximately 150 miles northeast of Pemba and 30 miles from the Mozambique coast.

Expected revenue from the contract will be included in the third quarter 2014 backlog of unfilled orders for the Hydrocarbons segment. The contract value was not disclosed.

About KBR

KBR is a global engineering, construction and services company supporting the energy, hydrocarbons, power, industrial, civil infrastructure, minerals, government services and commercial markets. For more information, visit www.kbr.com.

Forward Looking Statement

The statements in this press release that are not historical statements, including statements regarding future financial performance and backlog information, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, 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 and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates, escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.

KBR's most recently filed Annual Report on Form 10-K/A, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

CONTACT:
Zac Nagle
Vice President,
Investor Relations and Communications
713-753-5082
investors@kbr.com
or

Rick Goins
Director, Corporate Communications
713-753-3800
mediarelations@kbr.com