Sakhalin-II

Sakhalin II is one of the six phases of the project to the production of natural gas and oil north of Russia's Pacific island of Sakhalin in the Sea of ​​Okhotsk north of Japan. It is so far the world's largest project for the promotion of LNG and was for several years the largest ever investment by foreign companies in Russia until the end of 2006 the majority of shares in the project to the Russian state-owned energy giant Gazprom has been submitted.

The project

The project was concluded in 1994 between the Russian government under President Boris Yeltsin and the exporting consortium " Sakhalin Energy Investment Company Ltd.. " ( SEIC ) under a Production Sharing Agreement. At the SEIC ( with tax favorable headquarters in Bermuda ) held at the beginning of acting as operator of the project Dutch-British energy giant Royal Dutch Shell with 55 % majority shareholding. Furthermore, the Japanese company Mitsui were involved with initially 25 % and Mitsubishi with initially 20 % of it. Lender for the project are the " Japan Bank for International Cooperation " ( JBIC ), and the U.S. " Overseas Private Investment Corporation " ( OPIC ), the European Bank for Reconstruction and Development (EBRD ), next to the U.S. government EximBank. The British government also "Export Credits Guarantee Department " ( ECGD ) is considering a support. The refinancing of the project should also be done by an agreement whereby to afford until reaching the break-even point in the sale of the gas tax to the Russian State ( production-sharing mode). By December 2006, $ 12 billion has already been invested.

Prior to the Sakhalin Island are the largest previously untapped oil and gas reserves in the world. The total energy yield of Sakhalin is estimated at 700 million tons of oil and 2.5 trillion cubic meters of gas. The developed through " Sakhalin II" oil and gas reserves are estimated at a calculated value of 4 billion barrels of oil. " Sakhalin II" consists of two new production platforms off the north coast ( a third is in consideration ), and a network of pipelines, which run about 800 miles of the southernmost point of the island, where the gas will be liquefied in two plants ( the largest LNG producer in the world ) to liquefied natural gas (LNG ) and how the oil is pumped onto tankers. From the summer of 2008 ( initially it was planned November 2007) are with " Sakhalin II" (estimated reserves: about 150-180 million tons of oil ( about one billion barrels) and 500-800 billion cubic meters ) per year from 9.6 million tons of liquefied promote the two gas fields Piltun - Astochskoje and Lunskoye (compared to about 100 billion cubic meters of natural gas annually consumed in Germany ). The offshore production of oil has already begun. The main importing countries are Japan ( main buyers of gas supplies ), Korea and the United States. For at least 98 % of the gas flow rates were the end of 2006 already fixed delivery contracts.

Environmental problems

Various environmental organizations protesting against the project. The Association of Indigenous Peoples of the Russian North ( RAIPON ) fears that across the island and about 1000 rivers and streams running pipelines threaten the main spawning grounds of salmon event of a leak. Salmon is the most important food of the natives of Sakhalin, a seismically active region relative. Greenpeace also struggled early as the first phase of the project, the commencement of drilling to oil and gas exploration off the coast of Sakhalin as it threatens the feeding grounds of the world's last population of only one hundred western gray whales. The regional environmental organization Sakhalin Environment Watch ( SEW), in April 2006, a list of violations of applicable environmental law.

The Russian " Ministry of Natural Resources " subordinated Environmental Inspectorate " Rosprirodnadzor " and the regional water authority led early September 2006 allegedly because of over 100 serious violations of Russian environmental laws by a subcontractor of SEIC (the company Starstroy ) the involvement of the public prosecutor, the withdrawal of a positive environmental Assessment and the cancellation of twelve necessary water rights permits for the construction of overland pipelines (Phase 2 of the project Sakhalin II) and thus effectively stopped the construction work. In addition, there were complaints from the oil platform " Molikpaq " were huge quantities of industrial wastewater was discharged into the sea. SEIC have also contrary to the provisions of the potential hazards through abandoned wells not checked and the Environment Agency not regularly reports on its water consumption. The WWF also criticizes the non-compliance of whale protection requirements during construction and operation of offshore oil platforms through shell.

The Environmental Agency announced in early December, there'll be a lawsuit in the amount of 30 billion U.S. dollars raise in March 2007 against Shell because the pipeline has already begun have led to significant erosion problems, geological hazards caused by floods are undervalued and trees had been felled illegally.

Economic policy background

In various media analyzes of the actual reason for the freeze but is seen in a political influence of the Putin government. Even the organization Greenpeace saw in the actions of the Russian government a pretext: As an indication of a link is listed for example, that the withdrawal of the environmental permit was exactly 15 days after a dramatic increase in the project cost estimates by Shell ( see below).

Background for the influence is that " Sakhalin II" was so far the only project of the region, were not initially involved in the Russian company and keep the Russian government under Vladimir Putin the full state control over the stocks of raw materials, or restore them want. The largest Russian energy giant Gazprom, which has been the export monopoly for Russian gas, but still no commitment and little technology experience in the LPG business, had initially attempted unsuccessfully to subsequent participation in the consortium. Gazprom wanted to acquire a blocking minority in SEIC and offered in return for a share of 50 % in the other, undeveloped Gazprom - sponsored project, the prized over 3.3 trillion cubic meters of gas reserves " Sapolarnoje - Neocomian - layer " in Western Siberia, on the Europe is supplied with natural gas. Shortly afterwards, in the summer of 2005, Shell continued, however, allegedly without informing Gazprom in advance, the approach to the estimated in the contract project development costs 10 to 12 billion U.S. dollars to about 20 to 22 billion U.S. dollars by 2014 high. This meant that the planned time to reach the breakeven point also nearly doubled, the Russian state gets its duties until much later, all parts are correspondingly less valuable and the investment must be increased accordingly. The Russian authorities and Gazprom initially refused to agree to this increase and took the situation as an opportunity, a "reassessment " of the commitment to demand, but no longer by Product sharing, but in cash. Since Gazprom does not have sufficient own funds for the redevelopment of Russian gas reserves, it needs namely "hard" foreign investment. Beginning of July 2005 agreed Shell and Gaszprom accordingly an exchange transaction: Besides numerous other detailed agreements it provides, in essence, that Shell end of 2006 gives 25 % of the shares; in return, the shell receives from Gazprom as suggested 50 % of the occurrence ' Sapolarnoje - Neocomian ".

In addition, means of exit from the production-sharing mode that the project is no longer taxed delayed and a while ago a new law enacted on Russian gas exports now accesses. This may have the consequence that the entire LNG export Sakhalin II is carried out by state-owned company Gazprom. In December 2006, Shell, Mitsui and Mitsubishi agreed to the sale of the majority of SEIC shares for 7.45 billion U.S. dollars (converted 5.66 billion euros ) in Gazprom. Shell reduces its stake to 27.5 % (more reserves so that a blocking minority ), Mitsui 12.5% ​​and Mitsubishi 10%, Gazprom thus receives 50% plus one share. It was also agreed that the development investments to be increased by 3.6 billion U.S. dollars, but must be borne solely by the original project partners without Gazprom.

After this change of majority of Russian President Putin, who was personally present at the negotiations said that all environmental issues are now resolved.