20-10-06 Sakhalin Energy, the consortium developing the Sakhalin-II oil and gas project in Eastern Russia, reaffirmed its commitment to cooperate with Russian authorities in relation to alleged environmental violations.
Sakhalin Energy said Chief Executive Ian Craig had sent a letter to Russia's Natural Resources Minister Yuri Trutnev confirming his company would cooperate with both the ministry and environmental watchdog Rosprirodnadzor in a constructive dialogue.

Craig also informed the minister of the company's work to rectify acknowledged noncompliant environmental practices identified during the Rosprirodnadzor pipeline inspections in August. Noting that the onshore pipeline construction is being carried out in a challenging physical and geographic environment, Craig described the company's work to rectify the non-compliances.
Based on the results of the Makarov area inspection in August by Rosprirodnadzor, as well as Sakhalin Energy's own inspections and controls on its contractors, the company temporarily suspended construction activities at this pipeline section. In cooperation with Russian authorities, the company promptly developed and implemented a focused corrective action program.

Craig advised the minister that, as of Oct. 16, the company's contractors had achieved over 98 % completion of the remedial program in the Makarov area. Rosprirodnadzor has been invited to jointly re-inspect the area with the company.
Craig gave his assurance that the company will respond quickly and adequately to correct any more non-conformances that may be identified by the further Rosprirodnadzor inspection that started on Oct. 3. He assured the minister that the company would treat any findings of the ministry and Rosprirodnadzor with the highest priority.

He said the company was further strengthening controls and oversight of contractors and subcontractors executing the pipeline construction. The company said it looks forward to the opportunity to present a comprehensive action plan to remediate all identified non-compliances to Minister Trutnev.
Sakhalin Energy is controlled by Royal Dutch Shell. Japanese pair Mitsui & Co. and Mitsubishi are also partners.