When politics serves ecology: Shell dismissed

Oil, gas, coal, nuclear (PWR, EPR, hot fusion, ITER), gas and coal thermal power plants, cogeneration, tri-generation. Peakoil, depletion, economics, technologies and geopolitical strategies. Prices, pollution, economic and social costs ...
Targol
Econologue expert
Econologue expert
posts: 1897
Registration: 04/05/06, 16:49
Location: Bordeaux region
x 2

When politics serves ecology: Shell dismissed




by Targol » 19/09/06, 11:43

Russia revokes authorization to operate Sakhalin 2 from Shell

MOSCOW (AFP) - Russian authorities announced on Monday that they are withdrawing from oil giant Shell the right to develop its Sakhalin 2 project, a gigantic oil and gas field in the Russian Far East, while other foreign companies have been threatened with the same fate.

55% owned by Royal Dutch Shell, 25% and 20% respectively by Japanese trading companies Mitsui and Mitsubishi, Sakhaline 2, located in the Far East, is the largest private investment ever undertaken in the energy sector the world. It is also the largest foreign investment in Russia.

The Russian Public Prosecutor's Office announced that it was canceling "by decree" "ecological expertise", a document relating to respect for the environment which allowed Shell to develop phase two of its project.

As a result, "we are forced to implement the decision of the Public Prosecutor's Office," Russian Ministry of Natural Resources spokesman Rinat Guizatulin said.

In a press release, the Public Prosecutor's Office indicates that Shell did not provide "sufficiently thorough and complete documents" to prove full compliance with environmental standards.

It also considers that Shell does not guarantee the minimum conditions, from the point of view of compliance with seismic standards and soil erosion, in the construction of its infrastructure.

The Prosecutor's Office therefore cancels the ecological expertise, which de facto leads to the cessation of development activities for this project of 20 billion dollars (15,8 billion euros).

The Anglo-Dutch group, discreet in the hours following this announcement, ended up contesting the authorities' decision on Monday evening, saying they were "sure" of the project's compliance with Russian ecological standards and believing that there was no no legal basis for the cancellation of the ecological assessment.

"The specific problems referred to by the Public Prosecutor's Office and the Ministry of Natural Resources are immaterial. None of these concerns (...) constitute a basis for the cancellation," argued Sakhalin Energy, the consortium led by Shell, saying its willingness to continue working with the authorities to resolve the issue.

The Japanese government warned Moscow on Tuesday that the cancellation by the Russian authorities of the development rights of the oil giant Shell on the Sakhalin 2 project could have "a negative impact" on relations between the two capitals.

“The Japanese government fears that any delay in major cooperation projects between Russia and Japan, such as the symbolic Sakhalin 2, will have a negative impact on Russian-Japanese relations in general,” the government number two warned. Shinzo Abe.

"We have expressed our concerns to Russia and demanded a transparent process and the assurance that the project will be carried out without a hitch," added Abe, who is about to become Prime Minister of Japan.

The Japanese Minister of Economy, Trade and Industry, Toshihiro Nikai, said that he would meet with the Russian ambassador to Japan, Alexander Lossiukov.

The Sakhalin 2 project aims to export by boat, from summer 2008 and for more than 20 years, liquefied natural gas (LNG) to the major Japanese electricity and gas companies.

Decided in 2003, it was to mark the entry of Russian gas into the rapidly expanding market in the Asia-Pacific region.

If the prosecution is based on ecological requirements, analysts see it as a concern above all political, serving the wishes of the Kremlin to increase its control over a sector that it considers strategic.

"Everything that is happening around Sakhalin 2 can be interpreted as a desire on the part of the government to have more control over its projects, more control over money and resources," said Andreï Gromadine, an expert in the sector. gas and oil at MDM bank.

For Valery Nesterov, analyst at the investment bank Troïka Dialog, the argument of ecology is "only a pretext".

The agreements "were made at a time when oil prices were very low. Now that they are higher, there is a tendency in the government to think that these agreements are not as good for Russia as they are. should have, ”said Nesterov.

Shell's concerns indeed follow weeks of constant criticism of the Sakhalin 2 project.

The Minister of Natural Resources Yuri Trutnev had last week expressed strong reservations, estimating that Russia would lose 10 billion dollars in revenue due to mismanagement of the Sakhalin 2 project.

And an adviser to President Vladimir Putin, interviewed earlier this month, did not hide the Kremlin's intentions.

As the legislative elections of 2007 and the presidential elections in 2008 approach, "my personal feeling is that (...) the ecological factor will be very important", declared Igor Chouvalov.

As a sign of this new deal, the Ministry of Natural Resources warned in the morning that it could withdraw their operating licenses from foreign majors on three projects in Russia, Sakhalin 2 for Shell, Sakhalin 1 for ExxonMobil and Khariaga for Total.

In Paris, Total has already reacted by asserting that it "applied Russian laws and regulations".

source: AFP
0 x
"Anyone who believes that exponential growth can continue indefinitely in a finite world is a fool, or an economist." KEBoulding
User avatar
Woodcutter
Econologue expert
Econologue expert
posts: 4731
Registration: 07/11/05, 10:45
Location: Mountain ... (Trièves)
x 2




by Woodcutter » 19/09/06, 12:16

Pout... :| The problem is that all this is just money and power, the ecology they do not care completely in my opinion ...

They could have said exactly the opposite based on the same laws if it had been beneficial for them ...
0 x
Christophe
Moderator
Moderator
posts: 79117
Registration: 10/02/03, 14:06
Location: Greenhouse planet
x 10972




by Christophe » 19/09/06, 12:22

Woodcutter wrote:Pout... :| The problem is that all this is just money and power, the ecology they do not care completely in my opinion ...


Really? : Cheesy:
0 x
Targol
Econologue expert
Econologue expert
posts: 1897
Registration: 04/05/06, 16:49
Location: Bordeaux region
x 2




by Targol » 19/09/06, 13:09

Woodcutter wrote:Pout... :| The problem is that all this is just money and power, the ecology they do not care completely in my opinion ...

They could have said exactly the opposite based on the same laws if it had been beneficial for them ...


Hence the title of the subject.
On the other hand, it is obvious that this decision will only be temporary: the time to renegotiate the contracts so that the Russian government crunches a little more of the cake and they will give back to all these tankers carte blanche to rot the environment. : Evil:
0 x
"Anyone who believes that exponential growth can continue indefinitely in a finite world is a fool, or an economist." KEBoulding
User avatar
Woodcutter
Econologue expert
Econologue expert
posts: 4731
Registration: 07/11/05, 10:45
Location: Mountain ... (Trièves)
x 2




by Woodcutter » 19/09/06, 13:51

Targol wrote:[...] Hence the title of the subject. [...]
Well ... I don't even know if it really helps ecology ...

She "uses" it like a clearly visible flag, yes ... :frown:
0 x
Targol
Econologue expert
Econologue expert
posts: 1897
Registration: 04/05/06, 16:49
Location: Bordeaux region
x 2




by Targol » 19/09/06, 13:55

Well, in the short term in any case, it means one less oil exploitation :D
: Arrow: therefore less oil production
: Arrow: therefore rising prices
: Arrow: so alternatives that break through better! :D
0 x
"Anyone who believes that exponential growth can continue indefinitely in a finite world is a fool, or an economist." KEBoulding

 


  • Similar topics
    Replies
    views
    Last message

Go back to "Fossil energies: oil, gas, coal and nuclear electricity (fission and fusion)"

Who is online ?

Users browsing this forum : No registered users and 260 guests