Big Oil on Sakhalin: Putting Profits Before People and the Environment

Map of Sakhalin's oil and gas projects and pipelines. Click on image for greater detail. Map: US Energy Information Agency.

Since 1994, Royal Dutch/Shell, ExxonMobil and other international energy giants have been developing massive oil and natural gas extraction projects on- and offshore Sakhalin Island, Russia.

Pacific Environment has worked with grassroots organizations on Sakhalin and allies around the world for over ten years to force Shell, Exxon-Mobil, and other oil companies to apply best international social and environmental standards to Sakhalin projects and to halt the most egregious projects altogether. These oil and gas mega-projects projects threaten the economic and social wellbeing of Sakhalin’s people, including the island’s indigenous peoples and commercial fishermen. The projects also threaten Sakhalin's fragile ecosystems, abundant wild salmon runs, rich marine fisheries, and one of the world’s most critically endangered whales—the Western Pacific Gray Whale. In 2007, Sakhalin Environment Watch achieved a major conservation victory by successfully recreating the Vostochny Wildlife Refuge to protect 175,000 acres of pristine wilderness.

Sakhalin II, the world’s largest integrated oil and gas project, is the most infamous of the Sakhalin projects, known for environmental violations and for the Russian government’s decision to transfer controlling share of the project from Royal Dutch/ Shell to state-owned Gazprom. Throughout the life of the project, Sakhalin Energy Investment Company sought the financial backing of taxpayer-supported banks like the US Export-Import Bank and European Bank for Reconstruction and Development and from private banks like Credit Suisse First Boston to expand Sakhalin II, but environmental violations forced financial institutions to deny funding for the massive project. Only the Japanese Bank for International Cooperation chose to fund Sakhalin II.

Follow these links to learn about the projects in detail:

Learn More:

Sakhalin I

Sakhalin II

Vostochny Wildlife Refuge

Maps

Also, follow the links in the right hand navigation pane to learn more about the Sakhalin project and our Sakhalin campaign. If you still have a question, visit our interactive Frequently Asked Questions section by clicking here.