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Grassroots Refinery Project

09 December 2008

KBR has been selected by The Petroleum Oil and Gas Corporation of South Africa (PetroSA) to provide feasibility and front-end engineering and design (FEED) study services for its proposed 400,000 barrels per day (bpd) grassroots refinery - Project Mthombo (also known as Coega refinery).

Grassroots Refinery Project
Grassroots Refinery Project

KBR will work with PetroSA to provide a sustainable and commercially viable solution to the liquid fuels supply challenges faced in South Africa. The selection follows KBR's completion of a prefeasibility study under Project Mthombo earlier this year. Work on the project is expected to begin in December 2008 and will primarily be conducted out of KBR offices in Houston and Johannesburg.

"KBR is pleased to continue our successful partnership with PetroSA, offering our expertise in designing this world-class refinery," said John Quinn, President, Downstream for KBR. "This selection provides KBR the opportunity to build upon our mega-refining expertise and to continue the development of our Johannesburg office as a service provider within the sub-Saharan region."

Project Mthombo has been selected as one of the first major projects within PetroSA to be governed by the principles and ideals of the Competitive Supplier Development Program (CSDP). During the feasibility phase we will work closely with PetroSA to develop a CSDP plan to maximize Project Mthombo's impact toward increasing local economic growth, employment creation, and skills development in line with the Industry Liquid Fuels Charter.

Mr. Sipho Mkhize, CEO of PetroSA, said KBR was chosen because of the quality and expertise of its management, its proven mega-refinery expertise in the petroleum industry and its total commitment to this fast-tracked project. "We are also delighted that KBR has shown its full support in working with PetroSA to achieve the goals of transformation of the local petroleum industry."

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