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gh BLACK GOLD AND THE DARK FUTURE OF SAKHALIN

Moscow , WWF Russia
15.11.2004
At the end of November the European Bank for Reconstruction and Development (EBRD) should have issued their verdict on whether or not to extend loans for the development of new oil fields under the "Sakhalin-2 project. WWF of Russia created the film about this problem.
Send mail Scientist: Tatiana Serykh, co-ordinator of the program for ecological policy for the oil and gas sector , Moscow

For additional information: (7-095) 727-09-30 or tserykh@wwf.ru
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The fate of Sakhalin's ecology is to be decided at the end of November. By that time, the European Bank for Reconstruction and Development (EBRD) should have issued their verdict on whether or not to extend loans for the development of new oil fields under the "Sakhalin-2 project" undertaken by the Sakhalin Energy Company formed by multi-national corporations Shell, Mitsui and Mitsubishi. The oil magnates, under the directive of EBRD, have recently appealed to the independent expert commission of the World Conservation Union (IUCN) regarding the project's estimated threat to the population of grey whales in the Okhotsk Sea.

An expedition from the World Wildlife Fund (WWF) of Russia went to Sakhalin in the late September this year to study the problem. During the expedition the participants also made a film that will be released in the late November. "This is a further argument intended to convince the Bank's Directors that the "Sakhalin-2 project " in its present form threatens not only whales, but also much of the other marine wildlife, including salmon, which would seriously undermine the development of fisheries and the wider economy of Sakhalin," - explains Tatiana Serykh, coordinator of the program for ecological policy of the oil and gas sector of WWF Russia. The film should also be viewed by any other potential investors that may subsequently appear if the EBRD refuse the financial backing, as well as by the governments of industrial countries considering buying oil from Sakhalin, particularly in countries where the public are deeply concerned about the potential ecological consequences of the new Sakhalin project.

"WWF has never insisted on cancelling the project, but requires that it conforms to Russian standards and rules," - comments Tatiana Serykh, - "as in its current form the project violates Russian laws. One could guess that its hidden purpose is merely to put more money in the pockets of bureaucrats and owners of giant multi-national corporations. And Russia will be cheated, because major profits will merely flow away to foreign companies. Moreover, "Sakhalin-2" entails the risk of a severe ecological catastrophe in the Sakhalin and surrounding seas. The oil industrialists expect to build the pipeline in Russia very cheaply, whereas such a project located in Europe or elsewhere would require more advanced technologies and, therefore, more investment. For example, the construction of a pipeline in Alaska cost 20 billion dollars, whereas Sakhalin Energy is only intending to spend five".

WWF Russia has made the following demands of the Sakhalin Energy Company. First, it will be necessary to change the plans for drilling oil wells on the coastal shelf in the Pil'tun Bay, where the richest oil and gas reserves are to be found. The bottom of this bay supports a unique community of animals and plants, and, most importantly, is the feeding ground of summer-visiting grey whales. The Okhotsk-Korean population of whales is very small with only 23 females capable of reproduction. Scientists used to think that this population had died out back in the 19th century, and they were delighted to discover a few survivors in the 1970s. These whales are currently seriously endangered. In fact they have already been disturbed even before any construction work has begun: the seismological survey prevented the animals from feeding properly, and they subsequently left for their wintering grounds very underweight.

Secondly, WWF insists on changing the route of the proposed offshore pipeline, as under the existing project proposals, it will cross the whales' main feeding ground.

The third and fourth demands are related to the terrestrial pipeline, which will be 800 km long and extend from the north to the south of Sakhalin. In winter, when tankers are unable to break through the ice cover north of Sakhalin, it is planned that oil will be carried southwards to the Anivsky Bay, where the water does not freeze. This will mean that the pipeline will go across several rivers, where salmon come to spawn, and also cross numerous tectonic faults. In this seismically active region, the risks of an accident or oil leak are very high. Any oil spill that would result in damage to ecosystems, particularly fish stocks, would be disastrous, especially as fishing is the primary source of income for local people. However, the budget for the project is insufficient to take suitable measures for reducing such risks.

In the Anivsky Bay, at the end of the pipeline, the gas liquefying plant and the oil terminal are currently already under construction. Here the bay is naturally too shallow to allow for the passage of oil tankers; and so it's being deepened: with the resultant excavated deposits being transported to more central areas of the bay. It is envisaged that a huge mass of such dredged material will need to be moved, around one million cubic meters. This is likely to cause irreversible damage to the marine ecosystem. The Anivsky Bay is known for the highest concentration of marine life in the Okhotsk Sea. Large populations of crab, shrimp, salmon and other sea creatures inhabit this central part of the bay, which is now being inundated with the million cubic meters of excavated material. Considering that this procedure will have to be repeated at regular intervals, as the displaced material will be routinely washed back towards the shore, it is very probable that very soon this highly populated bay will become lifeless.

Just prior to the WWF expedition, there was a fuel oil spill from the ship "Christopher Columbus" which belonged to one of the contractors of the Sakhalin Energy company. After this incident it took two days before specialists arrived in order to assess the situation and suggest a plan for cleaning up the spillage. "This incident demonstrates that the Company has no adequate procedures for accident liquidation, and this is unlikely to be done by 2007," - says Tatiana Serykh.

The ecologists and oil producers have already reached mutual agreement on some points. In spring the Sakhalin Energy agreed to design an alternative route for the submarine pipeline and to postpone the development of the oil field until winter, when the whales leave the coastal waters. Hopefully, the efforts of the independent experts of IUCN will help to persuade the Company to further refine the project to meet the important nature conservation requirements. The result should be known by the end of 2004 or beginning of 2005.

By the way, one of the leading scientists on see mammals Erich Hoyt just has published a new book 'Marine Protected Areas for Whales, Dolphins and Porpoises: A World Handbook for Cetacean Habitat Conservation'. Worldwide in coverage, the 520-page book reveals the inside story on more than 500 existing and planned marine protected areas (MPAs), national parks and sanctuaries. It is designed to be a key resource for scientists, research institutions, students, wildlife conservation agencies, MPA managers, and anyone who cares about cetaceans and the special places where they live. Check www.cetaceanhabitat.org and www.phinz.com for more information.

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