Way cleared for Sakhalin-2 funding

A massive oil and gas project on the Pacific Russian island of Sakhalin complies for the most part with environmental, health and safety standards — though some problems persist, says a report released Oct. 9.

The report by consultants AEA Technology is a key development for the Sakhalin II project, allowing a series of multibillion dollar loans to go forward.

Sakhalin 2 was controlled by Royal Dutch Shell PLC until last year, when Russian state-run gas monopoly OAO Gazprom took a controlling stake following warnings and threats by Russian environmental regulators.

“As far as implementation of the plans are concerned there is a high level of compliance for most of the project’s facilities/assets,” said the report, which was posted on the Sakhalin-2 Web site.

Among the outstanding issues, the report said, were problems of erosion and damage to riverbanks caused by an onshore pipeline and potential harm to gray whales from oil spills.

—The Associated Press