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updated 10:22, Tue October 09, 2007

KBR Agrees to Conduct Feasibility Study of Marathon Oil's 'Ozona' Discovery in Gulf of Mexico

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HOUSTON (AP) -- Military contractor and engineering firm KBR Inc. said Monday it has entered a contract with Marathon Oil Corp. to conduct a feasibility study of an offshore oil discovery.

The companies did not disclose financial terms of the deal.

Granherne, an engineering subsidiary of KBR, will research methods for connecting the so-called "Ozona" discovery in the Gulf of Mexico to Marathon's production facilities. Work has begun at Granherne's Houston offices and the firm expects to complete the contract within the month of October.

KBR shares rose 40 cents to end Monday's trading at $41.32. Earlier, they traded as high as $43.50, topping a previous 52-week high of $41.17.

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