KBR announces restructuring plans

Services company KRB said Thursday it was streamlining its business operations to focus on core strengths in hydrocarbons and government services.

The company, which has headquarters in Houston, said it was reorganizing into three business units -- technology and consulting, engineering and construction, and government services -- effective Dec. 31.

"The restructure we are announcing today will create a new KBR focused on its core strengths structured along delivery lines that will enable us to meet the expectations of our customers and other stakeholders," KBR President and Chief Executive Officer Stuart Bradie said in a statement.

The company is among the latest in the sector to revise its long-term plans in an era when global crude oil prices are on a long-term decline.

KBR said it's combining services ranging from consulting services for the oil and gas sector to engineering, procurement, construction, commissioning and maintenance for oil and gas, refining, petrochemicals, chemicals and industrial customers.

Within the last two months, KBR has signed deals in the refining sector of Saudi Arabia and in the exploration and production sector of Norway, two of the world leaders in terms of overall oil production.

When announcing the third quarter results in November, Bradie said the decline in oil prices "may present challenges" to the company's short-term operations.