Growth positions it to support increased exploration in the region

Growth positions it to support increased exploration in the region

Peak Oilfield Service Co.’s Cook Inlet division has expanded its operations in parent company CIRI’s home region. Improved infrastructure and equipment have positioned it to capitalize on increasing oil and gas exploration anticipated in the Cook Inlet region through 2010.

“There are two main reasons for our success,” said Ben Cleveland, Peak’s vice president who oversees the Cook Inlet division. “Our safety record is really good, and our equipment fleet is reliable and fairly new, thanks to the investments of our owners.”

The Cook Inlet division provides construction and maintenance services to the Kenai petrochemical industry. The division’s Cook Inlet oilfield support includes operations, construction, drilling and maintenance assistance to Chevron, ConocoPhillips, Tesoro, Marathon and Kenai Pipeline Co. at 11 offshore platforms and five onshore facilities.

The Cook Inlet division’s revenue growth from 2003 to 2008 has averaged 35 percent over this period. The division generates approximately a third of Peak’s total revenue.

Recent projects completed by the Cook Inlet division include replacing an old Anchorage power plant for Municipal Light & Power. Peak was awarded the $25 million contract in January 2006, and completed the work in 2007. Peak is also providing logistics and drilling support for ConocoPhillips’ drilling at the Beluga Gas Field.

Peak’s Cook Inlet fleet of equipment has grown to 195 pieces, roughly half the size of their North Slope fleet. The equipment is varied, including loaders, snowblowers, graders, cranes, dozers, backhoes, trailers and many other trucks for various purposes. The average number of man-hours in the Cook Inlet division has grown only 8 percent since 2003, while revenue earned by equipment has increased 44 percent.
“The growth of our fleet is directly proportional to the growth of our revenue,” said Cleveland.

Growth of the division’s fleet and activities led Peak to purchase several acres of land adjacent to its fabrication and equipment yard near the Nikiski Dock on the Kenai Peninsula. Peak will start building a new 100 foot-by-140 foot equipment maintenance shop at the yard in September, to be completed in November. Peak is currently constructing the foundation.

Peak adopted a behavioral-based safety program in 2004 and created a full-time position to manage it. The program strives to be proactive instead of reactive, is employee-driven and provides leadership training for first-line supervisors. As Peak is the largest employer on the Kenai Peninsula, this safety program very directly benefits many local families and communities.

“Our goal is to change the safety culture in the company,” said Cleveland. “Our level of safety incidents is lower, and the severity of the incidents is lower.”