KBR, Inc. (KBR) recently announced that it has been selected by Shell Canada Energy to conduct off-site modularization and pipe fabrication at Shell Canada’s Edmonton Module Facility. As per the contract, KBR will help Shell to derive the maximum benefits from the off-site modularization by providing pipe spool fabrication and module assembly for pipe, process, equipment and building modules.
The contract also involves the manufacture of a number of unique and new vertical modules and support for off-site testing and commissioning services. This project is KBR’s first Canadian Oil Sands Carbon Capture and Storage project.
The project at Edmonton Module Facility will deploy Shell Quest Carbon Capture and Storage (:CCS) technologies to minimize CO2 emissions at Shell’s Upgrader, which primarily upgrades oil generated from Shell’s Athabasca Oil Sands operations. The Shell Quest Carbon Capture and Storage technology is expected to decrease greenhouse gas emissions by capturing more than one million metric tons of CO2 produced during the upgrading process annually.
Recently, KBR inked an agreement with the State Oil Company of the Azerbaijan Republic (:SOCAR). The contract relates to providing the front-end engineering and design (FEED) services to the Gas Processing Plant (:GPP) located in the Oil-Gas Processing and Petrochemical Complex (:OGPC) in Azerbaijan.
The contract will be considered in KBR’s Hydrocarbon’s market, which primarily engages in engineering, procurement and construction services for large and complex upstream and downstream projects, including LNG and GTL facilities, onshore and offshore oil and gas production facilities, refining, petrochemicals, biofuels and other projects throughout the world. The technology segment revenue under the Hydrocarbon’s market grew 20% year over year.
KBR currently carries a Zacks Rank #3 (Hold). Other stocks worth a look in the services sector are Jacobs Engineering Group Inc. (JEC), AECOM Technology Corp (ACM) and Chicago Bridge & Iron (CBI), all carrying a Zacks Rank #2 (Buy).
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