Install

Get the latest updates as we post them — right on your browser

Today's paper. Last Updated: 05/23/2012

Arctic Showcase Gets Scrutinized for Safety

International conservationists on Thursday censured Gazprom's preparations for the country's first Arctic offshore drilling, urging the company to delay production until after this year.

The Prirazlomnoye oil field is set to be a test of how Russia reduces the danger of irreparably damaging the fragile environment, as it moves to tap energy resources there.

Several influential environmental groups, such as Greenpeace and the World Wildlife Fund, said the efforts to mitigate the risks were insufficient.

Gazprom insured the project for only 7 million rubles ($250,000) against potential damage to the local environment, said a joint statement by the environmentalists — coming after the disastrous spill in the Gulf of Mexico last year.

"It's an outright ridiculous amount," Mikhail Babenko, who runs the World Wildlife Fund's oil and gas global Arctic program, said by phone. The cleanup from the Gulf spill cost BP $40.7 billion, including a $20 billion trust fund to handle damage claims.

The statement also noted that the spill cleanup service closest to the field is almost 1,000 kilometers away, in Murmansk. Babenko called for a faster way to react to a potential spill, especially in the harsh Arctic conditions.

"Suppose a spill occurs in December," he said. "It will create a situation when there's no way of getting to the place. The darkness and strong winds will not allow for flights by planes and helicopters."

In addition, Babenko said, Gazprom needs to prove that it has technology to collect oil from under the thick ice crust that covers the area most of the year.

The statement called for more openness about the project. Babenko said conservationists held exhaustive talks with Gazprom to gain the right to enter its central office, take a look at related documents and copy down some of the data.

Gazprom is taking delivery of a long-overdue drilling rig later this month to have it tugged to the field in the Pechora Sea. The company plans to complete the first production well before the end of this year, a Gazprom spokesman said. He declined to comment on the statement by the environmentalists.

The field will produce 6.6 million metric tons of oil and gas condensate at its plateau, Gazprom said on its web site — representing nearly half the total volume of such products extracted by the company last year — excluding output by its oil arm, Gazprom Neft.

As a pioneer in Russian Arctic drilling, Gazprom has a chance of making Prirazlomnoye a showcase for any further project in the area, said Vadim Mitroshin, an oil and gas analyst at Okritie.

"It's absolutely important to do everything in compliance with the highest environmental standards," he said.

Environmentalists achieved at least one victory in a previous multibillion-dollar project. Then-President Vladimir Putin ordered state-owned Transneft in 2006 to reroute construction of an oil pipeline further north of Lake Baikal over concerns of contamination.

The other conservation groups that signed Thursday's statement were Norway's Bellona; the Russian Union for Bird Protection; and the Social and Environmental Union.





This article has no comments.

Be the first to leave a comment


Discussion
The Moscow Times welcomes your comments and invites you to discuss topics with other readers. Your comment will be posted automatically to enable a live discussion. If you aren't familiar with our comments policy, you can read it here.

If you're a registered user, you can start typing your comment below. If not, take a moment to sign up. and then return to the article.

If your comment doesn't appear, contact us by using our web form.

Comments

Comments via Facebook



Also in Business

Sechin Headed Back to Rosneft

Kremlin heavyweight Igor Sechin was put back in charge of Rosneft on Tuesday, a little over a year after he had the reins of the oil giant yanked from his hands under orders from then-President Dmitry Medvedev to reduce the grip of government ministers on state-owned companies.

Drugmakers' Hopes High for Health Minister

Foreign and local drugmakers on Tuesday welcomed the appointment of Veronika Skvortsova as health minister, saying they expect her to enforce initiatives promoted by her predecessor, Tatyana Golikova, but bring a scientific approach to resolving industry problems.

Sberbank Crowned Most Valuable Russian Brand Globally

Sberbank whizzed past Mobile TeleSystems to become the strongest Russian brand in the world, according to an annual global brands ranking. The nation's largest bank was among the fastest risers on the list, jumping 25 spots to 74th place.

Bashneft Clings to LUKoil at Trebs and Titov

Bashneft said Tuesday that it will try to continue to work with LUKoil on the Trebs and Titov oil-field complex despite a regulatory decision that effectively ejects the country’s second-largest oil company from the project.

Entrepreneur Brings Holidays on Wheels to Russia

When Yury Yelashkin first encountered a camper van on holiday in Germany, it seemed like a somewhat alien concept.

New Internet Service Makes It Easier to Get a Ride

A startup company is offering a quick and clean taxi service in Moscow, where pickup is often slow and quality inconsistent.



print


Comments

This article has no comments.

Be the first to leave a comment





Most Read
MarketGid