Archived press release

No public subsidy for Shell's Sakhalin project

28 April 2006

Friends of the Earth has joined with major environmental and conservation groups today (Friday 28 April) to warn Ministers that Shell's mega oil and gas project off the coast of Sakhalin Island, Russia, is in grave danger of pushing the Western Pacific Grey Whale into extinction. A public consultation on funding for the project draws to a close today [1].

The European Bank for Reconstruction and Development (EBRD), which is funded by the taxpayer, and the UK's Export Credit Guarantee Department (ECGD), part of the Department of Trade and Industry, had invited public submissions on an application by oil giant Shell. It is believed that Shell is seeking a $300 million loan from EBRD, but this would open the door for further financing by export credit agencies.

In a joint letter, the environmental and conservation groups urge the bank and the agency to block funding for the project which they say will destroy Sakhalin's unique wildlife habitat and damage the livelihoods of fishermen on the island, as well as threatening the survival of the last remaining population of the Western Pacific Grey Whale.

Friends of the Earth's Sakhalin Campaigner, Mary Taylor, said:

"Taxpayers money should not be used to fund this project. These public institutions will lose any claim to upholding environmental standards if they approve Sakhalin II. The European Bank for Reconstruction and Development has already admitted it breaches its environmental policy."

Andy Ottaway, Director of Campaign Whale, commented:

"Shell is blatantly ignoring international concern and scientific advice putting profit before the desperate survival needs of these whales. It would be scandalous if public funds were used to back this project."

The organisations say that the "Sakhalin II" project significantly adds to the pressures on the critically endangered Western Grey Whale. Only around 100 of these creatures remain, with just 20 breeding females. Their summer feeding grounds are in the vicinity of the off-shore oil and gas platforms and associated pipelines. Risks created by the project include the threat of oil spills (including in frozen seas), noise from construction and ship collisions.

Shell also chose to ignore scientific advice and continued with construction of an off-shore platform base last summer, despite the concerns of an independent scientific review panel set up to work with the company. One panel scientist resigned in protest.

Note

[1] The NGOs are: Campaign Whale, Environmental Investigation Agency, Friends of the Earth (England, Wales and Northern Ireland), Greenpeace UK, International Fund for Animal Welfare UK, Marine Connection, Whale and Dolphin Conservation Society, WWF UK.

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Published by Friends of the Earth Trust