Udelhoven looking north to discover new markets

Peninsula-built modules shipped to Slope producers

Posted: Friday, February 17, 2006

For more than 35 years, Udelhoven Oilfield System Services in Nikiski has provided Alaska’s petroleum industry with a broad range of services, including maintenance, quality control and assurance, fabrication and construction.

This month, the company’s Nikiski plant completed two 60-ton, 16-by-60-foot, single-story test separator modules for ConocoPhillips now headed to the oil giant’s Alpine Field drill sites on the North Slope. Consisting of large horizontal tanks, piping and assorted instrumentation, the modules will measure the amount of oil produced at the sites.

This is the first fabrication contract for separator modules Udelhoven has signed with ConocoPhillips.

“This is a new market for us,” said Udelhoven Project Manager Milt Allen. “Construction really started in mid-October by the time we got a lot of the material in.”

Since then, 40 of the company’s approximately 100 Nikiski branch employees labored to construct the modules, completing the first in early February and the second a week or so later.

The completed modules were jacked up and loaded aboard Carlile Transportation heavy haul trucks for the long ride to the North Slope.

Udelhoven has plenty of experience providing the oil industry with what it needs, including fabricating modules, building process piping and installing structural steel, among other services, Allen said.

“We are also in the process of fabricating 700 horizontal support members for Conoco’s CD4 pipeline at Alpine,” he added.

Udelhoven clients also include Marathon, Forest Oil, Agrium and BP.

The firm remains active in seeking and generating new work.

“We are in the process of bidding on (Remote Electrical and Instrumentation Modules) for ConocoPhillips for the Beluga Gas Field,” Allen said. “We’re also bidding on a large compressor station onsite hookup (job).”

ConocoPhillips is doing engineering on two other Alpine Field drill sites. Allen said Udelhoven anticipates bidding successfully on supplying modules for those projects, as well.

“We are a very stable company and employ about 350 people (statewide),” said company President James Gilbert, adding that the firm does between $75 million and $80 million worth of business annually.

Udelhoven’s activities go well beyond Nikiski, to Anchorage, Kotzebue, Bethel and the North Slope, Gilbert said. Just under 200 Udelhoven employees work on the North Slope. The company also has offices in Houston and Beijing, engaging in oil and gas industry activities.

Udelhoven’s Alaska mech-anical and electrical engineering expertise has been contracted beyond the oil and gas industry. For instance, they were a subcontractor on Central Peninsula General Hospital’s expansion project and did subcontracting work on two recent high school projects in Anchorage, Gilbert said.

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