Alaska News

Alyeska Pipeline chose not to renew Crowley contract

In a statement that sheds new light on why Crowley Marine is no longer in the bidding for the prized contract to deliver oil-spill prevention and response services in Prince William Sound, the maritime company said Thursday that Alyeska Pipeline Service Co. decided not to extend its full, multi-year contract.

"Despite bidding aggressively for the SERVS contract extension, Crowley was not chosen by Alyeska to retain the entire scope of the current contract," according to a statement from Crowley.

The Ship Escort/Response Vessel System was created following the Exxon Valdez oil spill in 1989 and revelations that Alyeska's own oil-spill response equipment was hopelessly inadequate. The valuable contract pays for oil tanker escorts, spill equipment, response training for local fishing crews, and other services to prevent or respond to another oil spill. It's awarded by Alyeska Pipeline, which runs the 800-mile trans-Alaska pipeline on behalf of its oil-company owners, principally BP, ExxonMobil and ConocoPhillips.

An official with Alyeska Pipeline recently said Crowley Marine was no longer bidding for the contract to replace the current contract ending in mid-2018. But neither the pipeline company nor Crowley at the time offered further details on what happened.

News that a different contractor would take over Crowley's well-established role has caused alarm among observers, including the Prince William Sound Regional Citizens' Advisory Council, the official watchdog group.

"We are already talking about transition because we know it's very important that it be done well, and we are steadfast in our commitment to Prince William Sound," said Michelle Egan, communications director at Alyeska Pipeline. "Our plan is to form a transition team as soon as the contract is final."

Crowley has provided tanker docking services in Valdez since 1977, when the 800-mile trans-Alaska pipeline began transporting oil to Valdez. It has contracted with Alyeska for marine services since 1990, officials said.

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Rocky Smith, Crowley's general manager, said it's difficult to fully convey Crowley's disappointment about not remaining the contractor.

"Over the next couple of years, we will look for opportunities to redeploy our Valdez personnel and marine assets in new endeavors when our contract expires," Smith said.

"We have been assured that this outcome is the result of a very competitive landscape and is not a reflection of Crowley's qualifications or record," Tom Crowley, the company's chief executive, said in a prepared statement.

Crowley said the company will continue to "work constructively with Alyeska" for the final part of the contract and will engage in any transition process.

"Crowley and Alyeska agree that there is nothing more important than the continued protection of Prince William Sound," said Crowley.

Crowley operates 17 vessels to fulfill the contract, overseeing 230 mariners and 17 land-based administrative workers.

Egan said Alyeska Pipeline will provide more information when the contract is awarded. A decision is expected in the coming months.

Alex DeMarban

Alex DeMarban is a longtime Alaska journalist who covers business, the oil and gas industries and general assignments. Reach him at 907-257-4317 or alex@adn.com.

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