Press Releases
[Press release] Shell falsifies External Monitoring Reports on Sakhalin II river crossings
(June 7, 2006)
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Sakhalin II campaign groups today demanded that the Shell-led Sakhalin Energy Investment Company (SEIC) publicly disclose external observer monitoring reports of pipeline crossing impacts on Sakahlin Island’s wild salmon rivers. [1] The demand comes after the environmental groups learned that publicly disclosed reports of the results of so-called "independent monitoring" of Sakhalin II river crossings do not correspond with the real external observer monitoring reports upon which they are claimed to be based. [2]
The groups wrote to SEIC CEO Ian Craig, stating: "The generation of conflicting monitoring reports – one conducted independently but concealed, and the other disclosed but cleansed of critical findings – can be likened to maintaining two differing sets of financial books, a criminal offence in many jurisdictions."
The external observer monitoring reports were required by public finance institutions that are conducting due diligence on the USD 20 billion Sakhalin II project before deciding whether to finance the project. These include the European Bank for Reconstruction and Development (EBRD) and the export credit agencies of the US, UK and Japan.
The results of the external observer monitoring reports are said to be one of these public institutions' final tests for Shell following evidence documented by bank staff and independent NGOs that Sakhalin II pipeline crossings had damaged hundreds of rivers and tributaries that sustain economically vital wild salmon.
The groups also wrote to EBRD President Jean Lemierre about the falsified reports, stating, "This represents an extremely serious matter that indicates that SEIC is not accurately representing events that have bearing on compliance with your policies. This breach of policy and of trust demonstrates that SEIC has failed one of your most important tests and provides yet another reason why EBRD must decline financing for Sakhalin II."
Petr Hlobil
CEE Bankwatch Network
Tel: +420 603 154349
Notes for editors:
1. The Shell-led Sakhalin II, which also included Mitsui and Mitsubishi, is the largest integrated oil and gas project in the world.
2. See Mathiason, "Shell Consortium in New Pipeline Dispute," The Observer, May 21, 2006; see also Bergin, "Sakhalin 2 in River Row; Denies Coverup," Reuters, May 22, 2006.
The groups wrote to SEIC CEO Ian Craig, stating: "The generation of conflicting monitoring reports – one conducted independently but concealed, and the other disclosed but cleansed of critical findings – can be likened to maintaining two differing sets of financial books, a criminal offence in many jurisdictions."
The external observer monitoring reports were required by public finance institutions that are conducting due diligence on the USD 20 billion Sakhalin II project before deciding whether to finance the project. These include the European Bank for Reconstruction and Development (EBRD) and the export credit agencies of the US, UK and Japan.
The results of the external observer monitoring reports are said to be one of these public institutions' final tests for Shell following evidence documented by bank staff and independent NGOs that Sakhalin II pipeline crossings had damaged hundreds of rivers and tributaries that sustain economically vital wild salmon.
The groups also wrote to EBRD President Jean Lemierre about the falsified reports, stating, "This represents an extremely serious matter that indicates that SEIC is not accurately representing events that have bearing on compliance with your policies. This breach of policy and of trust demonstrates that SEIC has failed one of your most important tests and provides yet another reason why EBRD must decline financing for Sakhalin II."
For more information, contact:
Petr Hlobil
CEE Bankwatch Network
Tel: +420 603 154349
Notes for editors:
1. The Shell-led Sakhalin II, which also included Mitsui and Mitsubishi, is the largest integrated oil and gas project in the world.
2. See Mathiason, "Shell Consortium in New Pipeline Dispute," The Observer, May 21, 2006; see also Bergin, "Sakhalin 2 in River Row; Denies Coverup," Reuters, May 22, 2006.
CEE Bankwatch Network gratefully acknowledges EU funding support.