The project, led by Anglo-Dutch oil major Shell, has met with strong opposition from environmental groups and authorities over accusations of inadequate safety, massive volumes of waste disposal, seismic threats, erosion, and threats to marine life.
On September 18, the ministry annulled its own 2003 Sakhalin Environmental Expert Review (SEER), which gave the project a positive evaluation, following action from prosecutors. But it has not formally implemented the decision.
"The draft document on the annulment of the environmental review of the Sakhalin II project has not been approved [by the environmental protection service]," said Dmitry Kolosov, a spokesman for the Federal Service for the Oversight of Natural Resources. "We will insist [in court] that the annulment be formally implemented."
The Sakhalin II project, which is run by the Sakhalin Energy Investment Company formed by Royal Dutch Shell (55%) and Japan's Mitsui (25%) and Mitsubishi (20%), comprises an oil field with associated gas, a natural gas field with associated condensate production, a pipeline, a liquefied natural gas plant and an LNG export terminal. The two fields hold reserves totaling 150 million metric tons of oil, and 500 billion cubic meters of natural gas.
