EXHIBIT 99.1

        Gulf Island Fabrication, Inc. Announces Additional Project Award


     HOUMA, La.--(BUSINESS WIRE)--Sept. 27, 2006--Gulf Island Fabrication,  Inc.
(NASDAQ:  GIFI),  announces that its wholly owned subsidiary,  G.M. Fabricators,
L.P. d/b/a Gulf Marine Fabricators, has received formal notification by a letter
of intent from Bluewater Industries, Inc., who has contracted with ATP Oil & Gas
Corporation  ("ATP"),  that Gulf  Marine  has been  selected  to  fabricate  and
load-out  a  MinDOC  3 hull.  MinDOC  is a  deepwater  floating,  drilling,  and
production  concept.  The  MinDOC  3 hull  is for an ATP  deepwater  development
project.  Contract terms between Gulf Marine and Bluewater  Industries  have not
been  finalized,  thus  financial  terms of this  specific  contract will not be
disclosed.

     The fabrication, assembly and load-out will be performed at the Gulf Marine
facility located in South Texas. Gulf Marine expects to begin fabrication during
the first quarter of 2007, with the  anticipated  delivery of the project in the
second quarter of 2008.

     Gulf Island  Fabrication,  Inc.,  based in Houma,  Louisiana,  is a leading
fabricator  of offshore  drilling  and  production  platforms,  hull and/or deck
sections of floating production platforms and other specialized  structures used
in the  development  and  production  of offshore  oil and gas  reserves.  These
structures include jackets and deck sections of fixed production platforms; hull
and/or  deck  sections  of floating  production  platforms  (such as tension leg
platforms  ("TLPs")),  "SPARs and FPSOs",  piles,  wellhead  protectors,  subsea
templates  and various  production,  compressor  and utility  modules,  offshore
living  quarters,   tanks  and  barges.   The  Company  also  provides  offshore
interconnect pipe hook-up,  inshore marine construction,  manufacture and repair
of  pressure  vessels,  heavy  lifts  such as ship  integration  and TLP  module
integration,  loading and offloading  jack-up  drilling  rigs,  semi-submersible
drilling  rigs,  TLP's,  SPARs or other  similar  cargo  onshore,  and  offshore
scaffolding and piping insulation services and steel warehousing and sales.


     CONTACT: Gulf Island Fabrication Inc., Houma
              Kerry J. Chauvin, 985-872-2100
              or
              Joseph "Duke" Gallagher, 985-872-2100