KBR, Inc. Q2 2009 Earnings Call Transcript

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2009-07-31 14:22:12.0

Tags: Barclays Plc., Call Transcript, Earnings, KBR Inc., Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions)

We'll take our first question from Andy Kaplowitz with Barclays Capital.

Andy Kaplowitz - Barclays Capital

Given the size of Gorgon, what I wonder is, let's say you were to win the project, do you have the capacity to handle all three of the trains, do you need to partner up, or can you go at it alone?

Bill Utt

Well, Andy, on the Gorgon project, we're presently in a consortium with JGC and Clough and Hatch contractors in Australia to perform the work. The trains are being sequenced, because of the environmental constraints we find on Barrow Island down there and the limited lay down space we have. We're going to use a lot of modular construction that will allow us to bring in pieces of the facility sequentially and build it certainly in a much more limited footprint than we see in a stick built construction.

This is really one of the benefits KBR brings, because not only do we have the LNG expertise, but because of our offshore capabilities, principally in our Leatherhead UK operation that we're able to bring a lot of value in terms of overseeing the construction of modules, which is a very common practice in the offshore environment.

In terms of resource capabilities, we've obviously been working on this FEED and now in the post-FEED phase with Chevron and its partners for three, four years now. We've got our manpower curves established. We feel very comfortable. As to our ability to staff this project, we will be using engineering resource centers in the UK at our Greenford office and our Leatherhead office, but also looking to find additional support out of our Singapore and Jakarta offices as well. So we think we've got the resources in a pretty good position to execute this project.

Andy Kaplowitz - Barclays Capital

Is it public, the breakdown of the JV in terms of your percentage of the JV or no?

Bill Utt

I believe it is public. We're certainly the leading partner on that. I believe JGC and KBR are each 30% partners and then Clough and Hatch are each 20%.

Andy Kaplowitz - Barclays Capital

Then my follow-up is, at least what I see in your new awards, it looks like international infrastructure actually picked up a bit in the quarter. Could you talk more about the opportunities in that business? You mentioned Australia slowed down versus last year, but I know that's been a priority for you guys to build out that international infrastructure business. What do you see in that environment?

 

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