RUSSIA: Russia may cause Sakhalin-2 delay warns venture operator Sakhalin Energy.

Record ID: 343457

  • Title: RUSSIA: Russia may cause Sakhalin-2 delay warns venture operator Sakhalin Energy.
  • Date: 14th December 2006
  • Summary: (CEEF) MOSCOW, RUSSIA (DECEMBER 13, 2006) (REUTERS) VARIOUS OF OFFICIALS GATHERED FOR NEWS CONFERENCE REPORTERS LISTENING TO NEWS CONFERENCE REPORTER'S NOTEPAD CAMERAMEN FILMING (SOUNDBITE) (Russian) VICE PRESIDENT OF SAKHALIN ENERGY, IGOR IGNATYEV, SAYING: "The activity of the regulatory bodies is slowing down the process of getting an agreement, is beginning to have an
  • Embargoed: 29th December 2006 12:00
  • Keywords:
  • Topics: Energy
  • Reuters ID: LVADEGQ1GA6O650MDLICD201HKYP
  • Story Text: Sakhalin Energy, the operator of the Shell-led, RDSa.L Sakhalin-2 oil and gas project, said pressure from Russian authorities was beginning to threaten the venture's timetable.
    "The activity of the regulatory bodies is slowing down the process of getting an agreement, is beginning to have an effect on the project. In January we are due to start drilling at the Lunksoye field, but for more than two months we haven't been able to get RosPrirodNadzor to send its agreement for the start of the drilling. The timetable is no longer realistic. It will be a serious factor in keeping to project deadlines," Igor Ignatyev, vice president of Sakhalin Energy, told reporters in Moscow on Wednesday (December 13).
    Russia's Natural Resources Ministry has mounted a campaign of inspections by environmental agency RosPrirodNadzor and threats of administrative sanctions against Sakhalin-2, the only big Russian energy project entirely in foreign hands.
    Partly as a result, a deal is taking shape for Russian gas export monopoly Gazprom to buy into the scheme that includes the world's biggest liquified natural gas (LNG) project, which is due to start supplies to Japan, South Korea and the United States in mid-2008.
    Analysts say pressure from the state, notably from RosPrirodNadzor, is part of a wider drive to increase Kremlin control over Russia's strategic energy sector.
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