Press Release

HOUSTON

- July 16, 2015 -

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 Ganherne 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 GVAEngineering & Construction, including Offshore Oil & Gas; Onshore Oil & Gas; LNG/GTL; Refining; Petrochemicals; Chemicals; differentiated EPC, and Industrial ServicesGovernment 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. Visit www.kbr.com

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. Visit www.subsea7.com

Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial performance, 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, 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.

For further information, please contact:
Investors
Zac Nagle
Vice President, Investor Relations
713-753-5082
Investors@kbr.com

Media
Marit Babin
Director, Global Communications & Government Relations
713-753-3800
Mediarelations@kbr.com