SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.   20549


                                  FORM 8-K


                               CURRENT REPORT

                    Pursuant to Section 13 or 15(d) of the
                       Securities Exchange Act of 1934


                               January 1, 1998
               Date of Report (Date of earliest event reported)


                         GULF ISLAND FABRICATION, INC.
             (Exact name of Registrant as specified in its charter)


       LOUISIANA                    0-22303                       72-1147390
    (State or other         (Commission File Number)          (I.R.S. Employer
    jurisdiction of                                      Identification Number)
     incorporation)



                                583 Thompson Road
                             Houma, Louisiana 70363
                (Address of principal executive offices) (Zip Code)




                                 (504) 872-2100
                (Registrant's telephone number, including area code)



                                  Not Applicable
             (Former name or former address, if changed since last report)




Item 2.   Acquisition or Disposition of Assets.

     As  of  January  1,  1998,  the registrant, Gulf Island Fabrication, Inc.
(the "Company"), acquired  all  of  the  common   shares  of  Southport,  Inc. 
("Southport")  and its wholly owned subsidiary  Southport  International, Inc. 
pursuant  to  a  Stock  Purchase  Agreement  between  the  Company  and  the 
shareholders of Southport  identified  on  the  copy  of  such agreement filed
herewith as Exhibit 2.0 (the "Stock Purchase Agreement").  The purchase price  
was $6.0 million cash  ($4.5  million  of  which  was paid at the closing and 
$1.5 million,  subject to  possible  adjustment  for  certain  reductions  in  
Southport's shareholders' equity as of the closing date, will be paid within 60
days of closing),  plus  contingency  payments of up to an additional $5.0 
million based on Southport's net income over a four-year period ending December
31, 2001.  The purchase price was determined by arm's length negotiation between
the Company and the Southport shareholders.  The non-contingent portion of the
purchase price has  been  and  will be paid by the  Company  out  of working 
capital; contingency payments, if and when they become due, are expected to be
paid by the Company out of working capital or borrowings.

     Southport, headquartered  in  Harvey,  Louisiana, specializes in the 
fabrication of living quarters  for  offshore platforms for the oil and  gas  
industry.   The  Company intends that Southport will continue in this business.

     The acquisition was effective on January 1, 1998, as announced in the 
press release, dated January 5, 1998,  which  is  being  filed as an exhibit to
this report.  Additional information relating to the acquisition is set forth 
in the Stock Purchase Agreement.

Item 7.   Financial Statements and Exhibits.

     (a)  Financial Statements of Business Acquired.

          All financial statements required  to  be  filed  in connection with
this acquisition will  be filed by amendment to this report as soon as they are
available,  but  in  any  event within 60 days of the date hereof.

     (b)  Pro Forma Financial Information.

          All  pro  forma  financial  information  required to be filed in 
connection with this acquisition will be filed by amendment to this report  
as  soon  as it is available, but in any event within 60 days of the date 
hereof.

     (c)  Exhibits.

          2.0  Stock  Purchase  Agreement  dated as of November 12, 1997  
               between  Gulf  Island Fabrication, Inc. and the shareholders  
               of  Southport,  Inc., omitting schedules and exhibits.  This 
               exhibit includes a list briefly identifying the contents of 
               all omitted schedules and exhibits. The Company will furnish  
               supplementally a copy of any omitted schedule or exhibit to
               the Commission upon request.

          10.1 Employment  Agreement  dated  as  of January 1, 1998 between 
               Southport, Inc. and Stephen G. Benton, Jr.

          99.1 Press Release issued November 13, 1997  disclosing the execution
               of a definitive agreement to acquire all the outstanding shares 
               of Southport, Inc.

          99.2 Press Release issued January 5, 1998 disclosing  the completion
               of the Company's acquisition of Southport, Inc.


                            SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant  has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.

                              GULF ISLAND FABRICATION, INC.


                         By: /s/ Joseph P. Gallagher, III
                            ---------------------------------
                              Joseph P. Gallagher, III
                              Vice President -- Finance
                              (Principal Financial Officer
                              and Duly Authorized Officer)