ANCHORAGE, AK -- January 31, 1997 -- Alyeska Pipeline Service Company announced today that the company is reorganizing to place people closer to the operating assets. The redesign team is being led by John Dayton, Sr. Vice President of Operations. The plan will be implemented by May 1, 1997.

"The changes will guide the company toward our strategy of Operational Excellence and aid Alyeska's ability to support the Pipeline Owners and North Slope producers' efforts to bring new marginal oil fields into production," said Alyeska President and CEO Bob Malone. "The changes we're making will help us enhance our safety and environmental protection because we'll have our employees even closer to our facilities."

Malone has asked the design team to create business unit headquarters in Fairbanks and Valdez. The pipeline, previously two business units, will become one business unit based in Fairbanks. The corporate office will remain in Anchorage and continue to set overall direction for the company. The Valdez Marine Terminal and the Ship Escort Response Vessel System (SERVS) groups will form a single business unit centered in Valdez.

A detailed plan is not complete at this time, but relocation of employees to Fairbanks and Valdez is expected as the company places employees closer to the operating assets. Work force reductions were already anticipated this year because of the ramp down of two pump stations in July. Additional positions will be eliminated under the new design, although the number is unknown at this time. "We will treat people fairly and with respect and dignity during this process, and keep them informed about company changes so they can make informed decisions about their future," said Malone.

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