PLATFORM Unravelling the CarbonWeb
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Unravelling the Carbon Web is a project by PLATFORM. We work to reduce the environmental and social impacts of oil corporations, to help citizens gain a say in decisions that affect them, and to support the transition to a more sustainable energy economy.

IN THIS SECTION
Sakhalin II Impacts
A Production 'Non-Sharing' Agreement
Bankrolling Sakhalin II
Campaigning on Sakhalin II

Shell's Sakhalin II disaster

Shell's enormous Sakhalin II integrated oil and gas project is situated at Sakhalin Island in Russia's Far East, facing Arctic conditions where the sea is frozen for 6 months of the year. One of the largest oil and gas projects in the world, Sakhalin II will consist of three offshore platforms, offshore and onshore pipelines, an onshore processing facility, a liquefied natural gas (LNG) facility and oil and gas export terminal.

The project will have severe environmental impacts, including threatening the critically endangered Western Gray Whale with extinction, damaging habitats of endangered bird and fish species, and polluting important fisheries. Experts have reported that the project design falls way short of industry best practice, and that its risk assessments are inadequate, risking a catastrophic oil spill. Over its life-time, Sakhalin II will pump 17.3 trillion cubic feet of natural gas and 1 billion barrels of oil, accelerating climate chaos.

The project has already caused major social disruption to the islands' communities. Indigenous peoples complain that they were misled, their fish resources damaged and their way of life disrupted. The local economy has been distorted as imported labour has driven up prices. Roads have been damaged and local infrastructure stretched beyond capacity. The social fabric of affect communities has been undermined, with particularly acute impacts on women. The Sakhalin II Production Sharing Agreement - the contract that determines revenue distribution - is so unequal that the Russian state is unlikely to sign any future PSAs.

Shell are seeking public and private financing for Sakhalin II, despite failing to comply with basic standards. Although most financial institutions have rejected the project as beyond the pale, the European Bank for Reconstruction and Development continues to dither, while seven private banks including the Royal Bank of Scotland and ABN AMRO have made bids to arrange financing.

PLATFORM has been challenging Shell's Sakhalin plans and practices since 2004. We work with partners in Sakhalin, Japan, the US and elsewhere to demand an immediate moratorium and to prevent public and private financing.