28th Jan 2015 14:13
LONDON (Alliance News) - BG Group PLC Wednesday said it has signed a six year global alliance agreement with engineering, construction and services company KBR Inc that will enhance BG's capacity to deliver commercially viable oil and gas projects around the world.
The alliance has been signed for an initial period of six years, with the option to extend the agreement to 10 years. Under the agreement, KBR will provide experienced engineers and specialists who will provide technical support to BG in both pre-FEED and FEED stages, alongside offering project management advice across BG's global upstream portfolio, it said in a statement.
KBR will provide a "flexible resource that can be scaled to match the specific requirements of each project," said BG.
"In a lower oil price environment this is an important aspect of the alliance which enables BG Group to help minimise its fixed costs whilst retaining access to high value technical expertise and support," it said.
"We are pleased to announce our upstream alliance with KBR, which represents a significant evolution in the way we work with contractors. We will be taking a more integrated and collaborative approach in which we can fully capitalise on the high calibre of people and the knowledge that our partner KBR can bring to our business," said Chief Operating Officer Sami Iskander.
BG Group operates in more than 20 countries and is pursuing material opportunities and projects in Brazil, Australia, Tanzania and the US.
BG Group shares were down 1.5% to 906.00 pence per share on Wednesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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