Russia to start environment probe on Sakhalin 1 terminal

Moscow (Platts)--2Oct2006

Russia's environmental watchdog is to start an inspection of the De
Kastri terminal at Exxon-led Sakhalin 1 on October 9, the deputy head of the
service Oleg Mitvol said late Friday.
The inspection will run for one month until November 9, Mitvol said,
adding he could not say if operations would be affected.
Exxon Neftegas in Moscow did not respond to repeated calls for comment on
Monday.
The De Kastri inspection is to be led by Dmitri Belanovich, who reports
to Mitvol at the Rosprirodnadzor watchdog. Belanovich is already on Sakhalin
Island in Russia's Far East, working on a controversial month-long inspection
of the Shell-led Sakhalin 2 project, which began last week.
The probe is widely interpreted as part of a campaign by the authorities
to put pressure on foreign companies operating in Russia. It follows the start
of a new month-long inspection at Shell-led Sakhalin 2, also by
Rosprirodnadzor, part of the natural resources ministry.
Natural Resources Minister Yury Trutnev said last week that probe, and
how the Shell-led consortium Sakhalin Energy reacts to it, will be decisive in
determining the future of Sakhalin 2.
Mitvol's comments come amid speculation that the start of crude export
shipments from the De Kastri terminal, due to start this coming week, may be
delayed.
Earlier this week, an official from inspectorate Rostekhnadzor, which is
already carrying out its own inspection of the De Kastri terminal, said the
shipments might be delayed by one month, Itar Tass reported.
Mitvol was speaking on the return leg of a press trip to Sakhalin Island
organized by the natural resources ministry, which oversees the work of his
agency.
Exxon Neftegas is the operator for the Sakhalin 1 project, in which
ExxonMobil has a 30% interest. Other partners include Japan's Sakhalin Oil and
Gas Development Co. (30%); affiliates of Rosneft, the Russian state-owned oil
company, RN-Astra (8.5%); Sakhalinmorneftegas-Shelf (11.5%); and Indian
state-owned oil company ONGC Videsh Ltd. (20%).
--Rachel Graham, rachel_graham@platts.com

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