Monday, February 13, 2012

Russia

Russia Threatens To Abort Shell's Sakhalin Project

The pipeline being built as part of the Sakhalin-II project runs through the Zubrovy nature reserve on Sakhalin (ITAR-TASS)

October 20, 2006 -- Russian Natural Resources Minister Yury Trutnev today reiterated that Royal Dutch Shell's $20 billion Sakhalin-II gas project could be halted unless the company complies with environmental laws.

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October 20, 2006

British oil giant Shell and Japanese firms Mitsui and Mitsubishi currently face allegations that they violated environmental laws.

Trutnev also said Sakhalin Energy, a Shell subsidiary, has "admitted" that it has broken the law in its work, but indicated that a compromise might be reached.

Environmental groups back the claims, but critics accuse Moscow of using the allegations to help state gas company Gazprom muscle in on the deal.

The Sakhalin-II project includes the construction of an 800-kilometer gas pipeline, a liquefied natural gas plant, two oil platforms, and an oil terminal.

(AFP, dpa, Interfax)

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