KBR extends EPCM contract for Iraq’s Majnoon Oil Field

Published 17/07/2025, 21:20
KBR extends EPCM contract for Iraq’s Majnoon Oil Field

HOUSTON - KBR (NYSE:KBR), a $6.1 billion market cap engineering giant with nearly 13% revenue growth in the last twelve months, has secured a two-year renewal of its engineering, procurement, and construction management (EPCM) contract with Basra Oil Company (BOC) for the Majnoon Oil Field in Iraq, the company announced Thursday. According to InvestingPro data, analysts maintain a bullish outlook on KBR, which currently appears undervalued based on Fair Value analysis.

Under the extended agreement, KBR will continue providing comprehensive EPCM services aimed at sustaining forecasted production capacity, enhancing operational efficiency, maximizing local content, and improving safety at the oil field. This contract renewal comes as KBR demonstrates strong financial stability, with InvestingPro analysis showing the company has maintained dividend payments for 18 consecutive years while achieving a 1.41% dividend yield.

Jay Ibrahim, President of KBR Sustainable Technology Solutions, called the extension "a testament to the strong working relationship between KBR and BOC," noting it reinforces the company’s commitment to Iraq’s national energy strategy and the sustainable development of the Majnoon field.

Kadhim Kareem, CEO of the Majnoon Field at Basra Oil Company, stated that KBR "will continue to be our strategic partner in EPCM projects in Majnoon," supporting BOC’s long-term development goals through "safe, efficient, and sustainable project execution."

The Majnoon Oil Field is considered one of Iraq’s most strategic assets. KBR’s team in Iraq includes a significant number of local professionals working at the Majnoon site and other regional hubs to ensure seamless execution of ongoing and upcoming projects as part of the Growth II Program.

KBR employs approximately 38,000 people worldwide and operates in over 29 countries, serving customers in more than 80 countries, according to the press release statement.

The financial terms of the contract renewal were not disclosed. For detailed insights into KBR’s financial health, valuation metrics, and 10 additional exclusive ProTips, visit InvestingPro, where you can access comprehensive Pro Research Reports covering what really matters about KBR and 1,400+ other top stocks.

In other recent news, KBR has been awarded a front-end engineering design contract for an ammonia and urea production plant in Basra, Iraq. The project, commissioned by KAR Electrical Power Production Trading FZE, involves a facility capable of producing 2,300 metric tons of ammonia and 3,850 metric tons of urea per day. KBR will utilize its proprietary ammonia technology to ensure high efficiency and low emissions. Additionally, KBR’s joint venture with SOCAR has secured two engineering contracts from BP in Azerbaijan, focusing on the Sangachal Terminal Electrification and Shah Deniz compression projects. These projects are part of Azerbaijan’s clean energy initiatives and will be led by a predominantly Azerbaijani team. In leadership news, KBR announced the resignation of Chief Operating Officer Byron Bright, effective July 11, 2025. Meanwhile, UBS and KeyBanc have downgraded KBR’s stock due to concerns over the government’s termination of the HomeSafe program. UBS now rates KBR as Neutral, citing potential reductions in guidance, while KeyBanc moved to a Sector Weight rating, highlighting continued uncertainty in the company’s financial outlook.

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