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September 2004

Vol. 9, No. 36 Week of September 05, 2004

Shell orders study of Sakhalin whale issues

Allen Baker

Petroleum News Contributing Writer

Sakhalin Energy, the consortium led by Shell, has commissioned an independent review panel under the auspices of the World Conservation Union to look at mitigation measures to protect endangered western gray whales as the company develops the Sakhalin II phase 2 project. The review was announced by Shell on Aug. 26.

The scientific review panel will study how the company’s activities affect whales, and the effectiveness of various mitigation measures.

Sakhalin Energy has been operating offshore Sakhalin since 1999 and says it has detected no discernible change in behavior of the animals from existing operations.

Reschedules summer work

According to Ian Craig, CEO of Sakhalin Energy, “Our determination to ensure we can develop the Sakhalin II Phase 2 Project in a sustainable manner was clearly demonstrated by our decision to reschedule offshore work planned at Piltun this summer to allow us to carry out further studies on the Western Gray Whales.

“The formation of this expert panel goes even further — it underlines Sakhalin Energy’s commitment not only to ensure we have the best scientific advice, but that we also address people’s concerns in an open and transparent way,” Craig said in a statement.

Reeves to head review panel

The independent review panel will be led by Dr. Randall Reeves.

“The precarious status of this whale population has long been recognized by whale scientists and conservationists,” Reeves said in a statement with the Shell announcement, “but we had not anticipated that its critical feeding habitat would be found to lie in such close proximity to a major oil and gas complex.

“No cookbook recipe exists for shielding whales from the effects of industrial activities such as those under way on and around Sakhalin. This means that the project proponents and the scientific community face an enormous challenge in trying to define, predict and manage the environmental consequences of Sakhalin development.

“The intent of our review will be to examine the evidence in an independent manner and to provide a scientific evaluation of potential impacts as well as the likely efficacy of proposed mitigation measures,” Reeves said.

Western gray whales feed off Sakhalin in summer

The western gray whales migrate to the Sakhalin region and feed offshore Piltun, in northern Sakhalin, in the summer months. A near-shore feeding ground and a recently discovered offshore feeding area are currently the only confirmed feeding locations of the whales, according to the scientists consulted by Sakhalin Energy.

The whale subgroup at issue has about 100 members and just a couple dozen reproducing females. Members can reach 50 tons in weight and 45 feet in length. The eastern gray whale in the North Pacific around Alaska has recovered its numbers after suspension of the extensive whaling in the twentieth century. Oil companies have spent millions of dollars monitoring the whales and researching the impacts of development. Shell says Phase 1 of its project, with production from the Molikpaq platform, had no discernable impact on the whales, according to monitoring so far.

Earlier this year, Shell said it would delay construction of an offshore pipeline and consider altering the route to protect the whales. In addition to questions about routing of pipelines and placement of various exploration and production facilities, the industry has been studying the impact on the whales of seismic testing, and trying to develop ways to do the testing without affecting the whales unduly.

The various Sakhalin offshore projects represent billions of dollars in investments by the world’s oil companies.

Editor’s note: Allen Baker writes Petroleum News’ Far East Report (see page 14 in this week’s issue).






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