Russian environmentalists call for hold on Sakhalin Island work
Eric Watkins
OGJ Oil Diplomacy Editor
LOS ANGELES, Feb. 20 -- Several Russian and international environmental organizations, expressing concern over the adverse impact of oil and gas operations on grey whales, have urged the Russian government to suspend the pipelay for the Sakhalin-1 project.
Echoing earlier concerns over the neighboring Sakhalin-2 project, the ecologists also are asking the government to set up a commission to investigate the negative impact of oil and gas projects in Sakhalin on the population of grey whales.
The ecologists want the Russian government to suspend implementation of the projects on the island while the commission carries out its work.
The ecologists' demands follow reports this week that several gray whales inhabiting the waters off Sakhalin Island have migrated to the coast of Kamchatka.
"This may be linked with the implementation of oil and gas projects on Sakhalin," according to Viktor Burdin, the head of the vertebrate species laboratory, Pacific Institute of Geography, the Far-Eastern department of the Russian Academy of Sciences.
However, the environmentalists' requests also follow the recent suspension of work at Sakhalin-1's Odoptu and Arkutun-Dagi fields.
A spokeswoman for project operator Exxon Neftegas Ltd. (ENL) said the Russian government had not given its approval for 2009 plans and budgets, as well as for additions to 2008 plans for the future phase of the Odoptu and Arkutun-Dagi developments.
"ENL has begun to demobilize the Odoptu work sites and will defer the advancement of engineering work and contracting opportunities," she said, adding that ENL is committed to the project and will continue to seek approval for the budgets.
Last October, it was reported that the Sakhalin-1 project was barred from exporting natural gas to China, due to pressure from Moscow and Russia's state-owned gas monopoly OAO Gazprom.
The Sakhalin-1 developers proposed exporting the majority of the natural gas to China, with Gazprom a wholesaler for only a portion of the gas.
But Gazprom is looking to obtain exclusive rights to purchase all the natural gas from Sakhalin-1, and also has proposed a relatively low price in its purchase negotiations.
The action by environmentalists concerning Sakhalin-1 echoes problems faced by the developers of the Sakhalin-2 project when Russia withdrew its approval for the project, citing environmental concerns.
Many thought the real reason was Moscow's desire to tighten its grip on the nation's energy resources. The issue was settled only when the Sakhalin-2 partners agreed that Gazprom would acquire the majority interest in the project.
As a result, Gazprom now holds a 50%-plus-one stake in Sakhalin-2, while Royal Dutch Shell PLC holds a 27.5%-minus-one stake, Mitsui & Co. holds 12.5%, and Mitsubishi Corp. holds 10%.
In Sakhalin-1, the partners are ENL 30%, Sakhalin Oil & Gas Development Co. Ltd. 30%, ONGC Videsh Ltd. 20%, Sakhalinmorneftegas-Shelf 11.5%, and RN-Astra 8.5%.
Contact Eric Watkins at [email protected].