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Sakhalin-1 Energy Project Rrespects Environmental Norms Says Rosneft

Image from a helicopter shows a section of the 800 kms of underground pipelines (L) for the Sakhalin Energy along the Sea of Okhotsk on the island of Sakhalin. Russian officials and campaigners say the pipelines break a series of laws by causing erosion, silting up pristine rivers and running illegal access roads through dense forest. Photo courtesy of Denis Sinyakov and AFP.
by Staff Writers
Moscow (AFP) Oct 03, 2006
The head of Russian oil group Rosneft said Tuesday that the Sakhalin-1 energy project, which the company is developing with US group ExxonMobil, fully respected environmental legislation. The Sakhalin-2 project, also on the Island of Sakhalin off Russia's eastern coast, has been hit by environmental inspections and an essential permit required for work has been withdrawn by Russian authorities.

"All the shareholders, like the operator of the project (ExxonMobil), have respected all environmental norms, the rules of Russian legislation and the highest international standards with their work," said the president of Rosneft, Sergey Bogdanchikov, Interfax news agency reported from Sakhalin.

The environmental action against the Sakhalin-2 project, which is controlled by British group Shell, has been interpreted by analysts as an attempt by the Kremlin to force the operating consortium to re-negotiate the terms of their license for the project.

Sakhalin-1 is made up of three energy fields, exploited by a consortium which is 30-percent owned by ExxonMobil, 30-percent owned by Japanese companies SODECO and 20-percent owned by Indian company ONGC. State-controlled Rosneft has the remaining 20 percent.

The first delivery of oil from Sakhalin-1 was expected this week at the De Kastri sea terminal.

Bogdanchikov also announced on Tuesday that crude oil production by Rosneft this year would increase by 10 percent to 82 million tonnes, a faster rate of expansion than that of other Russia oil companies.

Rosneft shares began trading on the London and Moscow stock exchanges in July after the Russian state sold 15 percent of the company to private investors.

Source: Agence France-Presse

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