ASRC’s Nikiski fabrication plant to close

  • By ELIZABETH EARL and BEN BOETTGER
  • Saturday, November 19, 2016 9:16pm
  • News

The Arctic Slope Regional Corporation’s Nikiski fabrication facility, located just north of the ConocoPhillips LNG facility on the Kenai Spur Highway, will shut down within 60 days. It is operated by ASRC’s subsidiary ASRC Energy Services.

Employees were informed of the closure Nov. 8, said ASRC Senior Director of Communications Ty Hardt. According to a statement by ASRC released Friday, about 40 workers might lose jobs when the Nikiski facility closes by next month. Some of them could be transferred, along with some of the Nikiski facility’s equipment, to a larger ASRC fabrication plant in Anchorage, and others to ASRC’s North Slope operations.

ASRC Energy Services is a member of the oil field support trade association Alaska Support Industry Alliance. Alliance General Manager Rebecca Logan said that while “there’s no official role the Alliance would play in helping people find work in other areas,” ASRC would likely have other job opportunities to offer to workers who plan to stay with the company. For example, Logan pointed out that ASRC purchased two Beaufort Sea leases from Shell Oil Company, which was announced Wednesday.

“They (ASRC) are very actively involved in other areas of the state, so it would surprise me if a significant number of people didn’t have an opportunity for employment somewhere else with ASRC,” Logan said.

According to an ASRC information sheet, the Nikiski Fabrication Plant produces structural steel and pipe and installed electronics and instruments. Hardt said the plant had serviced Cook Inlet platforms as well as doing general fabrication work, and that its recent major clients were Hilcorp Energy Company and Tesoro Corporation, which operates its Nikiski petroleum refinery near the facility.

ASRC, one of Alaska’s 12 Native corporations, bought the Nikiski facility in 1997 and made significant upgrades to it as recently as 2012. A 26,000-square foot fabrication shop and heated warehouse, office space, staff housing, warm storage, warehouse and lot parking occupy the space, as well as a dock for offshore oil exploration. The Alaska LNG Project’s marine exploration with a jack-up rig operated out of the dock, known as the Rig Tenders dock.

The company is consolidating the Anchorage and Nikiski fabrication facilities in an effort to “streamline its operations to be right-sized and competitive in this challenging economic environment,” according to ASRC’s announcement.

A steep decline in production and oil prices have sharply impacted ASRC’s bottom line. In April 2015, the corporation distributed more than $125 million to its approximately 10,000 shareholders in the villages on the North Slope. In 2016, its shareholder distribution declined by more than half to $60 million.

Ben Boettger can be reached at ben.boettger@peninsulaclarion.com, and Elizabeth Earl at elizabeth.earl@peninsulaclarion.com.

More in News

Drummers perform during a celebration of the 10th anniversary of the Dena’ina Wellness Center in Kenai, Alaska, on Friday, July 12, 2024. (Jake Dye/Peninsula Clarion)
Kenaitze tribe celebrates 10 years of ‘far-fetched dream’ at wellness center

Community members recognized the work done at the Dena’ina Wellness Center over the past decade

The Kenai Safeway is seen on Wednesday, July 20, 2022. (Camille Botello/Peninsula Clarion)
Kenai and Soldotna Safeways may be sold under proposed Kroger-Albertsons merger

The local stores will be sold to CS Wholesale Grocers only if the merger overcomes suit from the FTC

Sockeye salmon caught in a set gillnet are dragged up onto the beach at a test site for selective harvest setnet gear in Kenai, Alaska, on Tuesday, July 25, 2023. (Jake Dye/Peninsula Clarion)
Draft plan published for disbursement of $11.5 million in 2021 and 2022 ESSN disasters

Public comment will be accepted for the draft spend plan until July 24

The Kasilof River is seen from the Kasilof River Recreation Area, July 30, 2019, in Kasilof, Alaska. (Photo by Erin Thompson/Peninsula Clarion)
King salmon fishing closed on Kasilof starting Monday

The emergency order is being issued to protect returning king salmon, citing weak returns

Soldotna City Hall is seen on Wednesday, June 23, 2021, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Soldotna’s city council appropriates funds for FY 2025 capital projects

Improvements are described for streets, police facility, Soldotna Creek Park and Soldotna Community Memorial Park

Gina Plank processes sockeye salmon caught on the first day of Kenai River dipnetting with her table set up on the bank of the Kenai River in Kenai, Alaska, on Wednesday, July 10, 2024. (Jake Dye/Peninsula Clarion)
Kenai River open for dipnetting

As of Tuesday, a total of 226,000 sockeye had been counted in the Kenai River’s late run

Assembly Vice President Tyson Cox speaks during a meeting of the Kenai Peninsula Borough Assembly in Soldotna, Alaska, on Tuesday, June 18, 2024. (Jake Dye/Peninsula Clarion)
Assembly won’t pursue further discussion on tabled bed tax resolution

Members say they’re going to work on a new version of the idea this winter

Gov. Mike Dunleavy pictured with members of the House majority after signing the fiscal year 2025 budget bills, Thursday, June 27, 2024, in Anchorage, Alaska. From left to right: Reps. Stanley Wright, Tom McKay, Thomas Baker, Craig Johnson, Kevin McCabe, Julie Coulombe and Laddie Shaw. (Photo provided by Office of the Governor)
Dunleavy signs capital budget with $3.7M in state funding for Kenai Peninsula, vetoes $3.3M

Roughly $90 million in federal funding also allocated to Kenai Peninsula

Alaska State Troopers logo.
Soldotna man arrested Friday after 30-minute police chase

The man had an outstanding warrant for felony probation violation

Most Read