Dome Will Employ Japanese Technology In New Shipyard

Dome Petroleum and Nissho Iwai Inc. have announced the signing of an agreement with Kawasaki Heavy Industries Ltd., Tokyo, for the transfer of Japanese shipbuilding technology to Canada to be used in Dome's proposed new Canadian shipyard. The new shipyard is an integral part of Dome's Western LNG Project to sell British Columbia LNG to Japan. At least half of the LNG vessel construction will be done in the new yard. With this Agreement, Dome will be able to implement in the new yard the most advanced technology in the shipbuilding world f o r quality control systems, and thus increase Canada's capability to construct largesize largesize, cost-efficient LNG ships and Arctic oil and LNG carriers.

The technical transfer will be achieved through the construction arrangement f o r the first two of the four moss spherical type LNG ships required for the LNG sale to Japan. Under this Agreement it is expected Kawasaki will build the first ship in Japan. The second ship will be identical to the first and will be built in Canada in the Dome shipyard, using Kawasaki's drawings and engineering information. Kawasaki will consult to Dome and assist the new yard in the construction of the second LNG ship. As part of the arrangement, Canadian shipyard personnel will be trained in Japan on the construction of the first LNG ship. Japanese technicians will be involved in Canada f o r building the second ship. Canadian materials and supplies will be utilized to the maximum extent possible.

In addition to bringing new technology to Canada, Kawasaki's technical assistance will allow the new yard to achieve efficient production operations in short order, and thus encourage the shipyard to add more Canadian content when constructing the third and fourth LNG ships.

The first ship will be Japanese-owned and will be delivered during the third quarter of 1985. The second ship will be Canadianowned and will be delivered in 1986. The proposed Western LNG Project is subject to approval by Canadian regulatory authorities.

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