KBR Awarded PMC Contract to Oversee Development of Fertilizer Project in Angola

Rhea-AI Summary

KBR (NYSE: KBR) has secured a Project Management Consultancy (PMC) contract from AMUFERT for their $2 billion fertilizer plant project in Soyo, Angola. The facility will produce 2,300 metric tons per day of ammonia and 4,000 metric tons per day of urea.

KBR's scope includes overseeing the engineering, procurement, and construction phases. This contract supplements KBR's previous involvement in the project, which included technology licensing, engineering design, equipment, and catalyst solutions.

The project aims to enhance agricultural productivity, create jobs, and establish Angola as a leading African fertilizer producer, contributing to regional food security. KBR's expertise in ammonia technology is demonstrated by their involvement in over 260 grassroot ammonia plants worldwide since 1943.

Positive

• Secured major PMC contract for $2B fertilizer project
• Extended scope beyond initial technology license agreement
• Strengthens position in African market
• Leverages core ammonia technology expertise

Negative

• None.

Insights

Financial Analyst

KBR's new Project Management Consultancy (PMC) contract for AMUFERT's $2 billion fertilizer project in Angola represents a significant business development that expands the company's footprint in Africa's industrial sector. While the exact contract value wasn't disclosed, PMC services for major capital projects typically generate 3-5% of the total project value, suggesting this could represent a $60-100 million revenue opportunity for KBR over the project's lifecycle.

This contract builds strategically upon KBR's existing relationship with AMUFERT, creating a comprehensive service package that now spans technology licensing, engineering design, equipment supply, and project management. This vertical integration demonstrates KBR's ability to capture multiple revenue streams from a single large project, maximizing client value while enhancing their own margins.

The Soyo facility's substantial production capacity (2,300 MTPD ammonia, 4,000 MTPD urea) positions it as a regionally significant asset that aligns with growing food security initiatives across Africa. For KBR, this project leverages their deep expertise in ammonia technology—having been involved in over 260 plants globally—while expanding their services portfolio beyond pure technology provision into higher-margin consulting work.

This contract reinforces KBR's strategic pivot toward sustainable technology solutions and government services, moving away from their historical focus on traditional oil and gas construction. The PMC role minimizes direct construction risk while maintaining meaningful project involvement, aligning with management's stated goal of generating more predictable, less cyclical revenue streams with improved margin profiles.

Engineering Expert

The AMUFERT fertilizer complex represents a significant engineering undertaking that will establish Angola as a major agricultural input producer. With capacities of 2,300 MTPD of ammonia and 4,000 MTPD of urea, this plant ranks as a world-scale facility comparable to major installations in traditional fertilizer-producing regions. The production ratio between ammonia and urea is technically optimized, as ammonia serves as the primary feedstock for urea synthesis, with the facility converting approximately 85% of its ammonia output into the more stable, transportable urea product.

KBR's expanded role from technology licensor to Project Management Consultant creates an unusual technical continuity that should benefit the project. Their proprietary ammonia synthesis technology likely incorporates their latest energy efficiency improvements, potentially reducing natural gas consumption by 3-5% compared to older facilities - a critical factor in the project's economics given Angola's domestic gas resources.

The Soyo location presents specific engineering challenges, including existing industrial infrastructure and complex logistics for equipment delivery. KBR's PMC responsibility will involve coordinating specialized material procurement from global suppliers, managing construction in a challenging environment, and ensuring proper integration of the ammonia synthesis loop with downstream urea production.

From a technical perspective, a project of this scale typically requires 36-48 months from engineering to commissioning. KBR's involvement in both technology provision and project management creates opportunities to optimize the schedule through early identification of long-lead equipment items and better alignment between process design and construction planning.

HOUSTON, Feb. 26, 2025 /PRNewswire/ -- KBR (NYSE: KBR) announced today that it has been awarded a contract for Project Management Consultancy (PMC) services by AMUFERT to support the development of its fertilizer plant in Soyo, Angola.

As part of this transformative $2 billion project, KBR will provide project management services overseeing engineering, procurement, and construction phases. The 2,300 metric tons per day (MTPD) ammonia and 4,000 MTPD urea facility, is designed to enhance agricultural productivity, drive economic growth through job creation, and position Angola as a leading fertilizer producer in Africa. This contract is in addition to the technology license, proprietary engineering design, equipment and catalyst solution work KBR previously announced on the same project.

Jay Ibrahim, KBR President, Sustainable Technology Solutions said: "We are proud to provide our PMC services for AMUFERT's landmark project, which aims to boost the national and regional food security of Angola and the neighboring countries. KBR provides end-to-end solutions across the asset lifecycle making us the partners of choice for clients."

KBR is a world leader in ammonia technology and has been at the forefront of innovation in the ammonia market for decades. Since 1943, KBR has licensed, engineered or constructed over 260 grassroot ammonia plants worldwide.

About KBR
We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 38,000 people worldwide with customers in more than 80 countries and operations in over 29 countries.

KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

Visit www.kbr.com

Forward Looking Statements

The statements in this press release that are not historical statements, including statements regarding future project performance and demand for the company's technology and services, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks, uncertainties and assumptions, many of which are beyond the company's control, that could cause actual results to differ materially from the results expressed or implied by the statements. These risks, uncertainties and assumptions include, but are not limited to, those set forth in the company's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks and other U.S. Securities and Exchange Commission filings, which discuss some of the important risks, uncertainties and assumptions that the company has identified that may affect its business, results of operations and financial condition. Due to such risks, uncertainties and assumptions, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.  Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

For further information, please contact:

Investors
Jamie DuBray
Vice President, Investor Relations
713-753-5082
Investors@kbr.com

Media
Philip Ivy
Vice President, Global Communications and Marketing
713-753-3800
MediaRelations@kbr.com

 

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SOURCE KBR, Inc.

FAQ

What is the total value of the AMUFERT fertilizer project that KBR is managing in Angola?

The AMUFERT fertilizer project in Soyo, Angola is valued at $2 billion.

What is the production capacity of the new AMUFERT fertilizer facility in Angola?

The facility will produce 2,300 metric tons per day of ammonia and 4,000 metric tons per day of urea.

What services will KBR provide for the AMUFERT fertilizer project?

KBR will provide Project Management Consultancy services, overseeing engineering, procurement, and construction phases, along with previously contracted technology licensing and engineering design.

How many ammonia plants has KBR been involved with globally?

Since 1943, KBR has licensed, engineered, or constructed over 260 grassroot ammonia plants worldwide.