Native corporations form prosperous joint ventures: these corporate marriages can be made in heaven if carefully thought out.

• Author: Stricker, Julie

Alaska was booming in the 1970s. Construction of the trans-Alaska oil pipeline and associated development in the North Slope oil patch brought major construction and petroleum companies to the state.

The companies were interested in forging commercial ties with Alaska companies. At the same time, the nascent Alaska Native regional corporations were entering the business world and looking for opportunities. It was a corporate matchmaker's dream.

Alaska's Native regional corporations were created under the 1971 Alaska Native Claims Settlement Act, a landmark piece of legislation that gave Alaska's Natives 44 million acres of land and nearly $1 billion to settle aboriginal land claims. Under the act, 13 for-profit regional and about 220 village corporations were formed.

While most of the regional corporations looked toward developing their natural resources, Kotzebue-based NANA Regional Corp. realized such development would be a lengthy process. NANA decided to create business ties with the oil field companies.

NANA began working in fields such as catering, camp services and security services. Over the years, NANA expanded into fuel and utility services, interests in drilling rigs and eventually an interest in a producing oil field, the Endicott field. Other Native corporations followed suit. Today, Alaskan-owned companies provide vital operations in drilling, construction, oil field support and services.

Especially for the larger enterprises, NANA entered the field as a joint venture partner, a business model that allowed the corporation to contract for a specific business enterprise, rather than in a continuing relationship, such as a partnership.

"It kind of gives you an opportunity to date before you get married," says Dean Rampy, chief operating officer for Fairbanks-based Doyon Ltd. "It's easier to wrap up a joint venture than sell a subsidiary."

A GROWING MARKET

Over the years, the regional corporations have entered dozens of joint ventures with Outside corporations, each other and with the federal government.

"Every one of them is different," says Sealaska Corp. Executive Vice President Rick Harris. "The joint ventures are being created for a variety of different purposes. It's all business. It's two companies saying it makes good sense for us to team together and make a business partnership on these opportunities.

"It really is just a function of the as sets and strengths of each company and what each company brings to the table."

Sometimes, a joint venture partner is the key to turning around a faltering company.

A GREAT MATCH

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