Sakhalin Energy Admits to Environmental Violations

Sakhalin Energy, operator of Sakhalin-2 oil and gas project, admitted to damaging the eco-system of Russia’s Sakhalin Island, while the country’s Natural Resources Minister Yuri Trutnev gave environmental watchdog Rosprirodnadzor another month to complete its inquire into alleged violations at Shell-led project.

CEO Ian Craig said Sakhalin Energy will be willing to compensate for the damage, but he expressed doubt the ministry’s preliminary estimates, putting it at 10 billion rubles ($371.33 million), are accurate.
According to a Sakhalin Energy press release, the project will remain economically viable despite the revised costs, bringing an estimated $50 billion into Russia’s treasury if oil trades at $35 per barrel, and as much as $80 billion if the oil price is $50 per barrel.

MosNews