Dome Petroleum Signs Exploration Agreement With Japanese National

Dome Petroleum Limited of Calgary, Canada, announced it has entered into a letter of intent with the Japanese National Oil Company. This letter confirms an agreement, in principle, whereby the Japanese National Oil Company has agreed to lend Dome Petroleum Limited $400 million for use in conducting exploratory activities in the Beaufort Sea.

This loan is recoverable out of a share of production from three oil fields developed in the Beaufort Sea. Under the arrangement, JNOC has the right to grant development loans with respect to these three oil fields, with such loan also being recoverable from the Beaufort Sea production.

The Japanese National Oil Company has the right to take in kind up to 25 percent of Dome's share of the crude oil produced from these three fields, dependent upon the percentage of development costs borne by the development loans.

Any export of petroleum hydrocarbons to Japan is subject to all normal Canadian Governmental approvals.

Maritime Reporter Magazine, page 22,  Oct 1980 G. Ward Disbrow

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First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.