WWF-UK: WWF questions Sakhalin's positive spin

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WWF questions Sakhalin's positive spin

Tuesday 9 October 2007
We are concerned that the negative aspects of an independent report to lenders of the controversial Sakhalin II oil and gas project have been buried by Sakhalin Energy. The UK Export Credit Guarantee department must heed the warnings in the report as it comes to a decision on supporting the project.
Sakhalin Energy have taken control of the release of the independent consultant's report about it's own project and used the opportunity to put a very positive spin on it. We are particularly concerned that the following key negative issues in the report have not been highlighted:
  • Timing: A general failure to carry out assessments prior to the commencement of construction work and thereby failing to provide adequate base line information. The recurring theme throughout the report is that too little has happened too late. Most documents were produced half way through construction, and did not relate to what happened on the key issues of river crossings, whale protection, and local communities.

  • Western Gray Whales: deficiencies were observed with parts of the independent review process and where there was a failure to follow the advice of whale experts on noise levels during all three construction seasons.

  • River Crossings: The review confirms that compliance on river crossings - a key test of environmental performance on this project - 'fell significantly short of requirements'. In particular, the construction in the Chaivo region, failed to take adequate measures relating to Steller's Sea Eagles - an endangered species. Overall erosion control has not been managed properly, impacting salmon-spawning rivers throughout the island.

  • Non-compliances: The consultants note that there are outstanding legal challenges and approvals on the project, which are still not resolved. Crucial documents, such as the oil spill response plan have not been released and included in the review.

  • The consultants concluded that the examples of non compliances are of high significance to potential lenders and cannot be resolved before a decision is required.


James Leaton, WWF-UK Policy Advisor, said "The UK Government promised that it would only support this project if the best scientific advice was followed and it is clear that whale expert advice on noise levels has been ignored. Furthermore, the positive spin put on this report by Sakhalin is alarming. The company is clearly in denial about the problems surrounding both people and the environment."
Location of Sakhalin II in the Sea of Okhotsk

"The company is clearly in denial about the problems surrounding both people and the environment."

James Leaton, Policy Advisor, WWF-UK


Related links
  • Read more about Sakhalin II
  • Visit our Oil and Gas website
  • Read the report by AEA Technology consultants.