Shell falsifies External Monitoring Reports on Sakhalin II river crossings

12 June 2006

Publicly disclosed external observer monitoring reports on Sakhalin II project were different from the original reports on which the released reports were allegedly based.

Sakhalin II campaign groups demanded disclosure of factual monitoring reports after learning that Shell ‘cleaned’ the reports available to the public. The groups learned that the publicly disclosed external observer monitoring reports were different from the original reports on which the released reports were allegedly based.

The groups wrote to SEIC CEO Ian Craig, stating: “The generation of conflicting monitoring reports – one conducted independently but concealed, and the other disclosed but cleansed of critical findings – can be likened to maintaining two differing sets of financial books, a criminal offence in many jurisdictions.”

The reports were intended to be the final test of Sakhalin II environmental effects after the bank staff and independent NGOs documented the damage to hundreds of rivers on the peninsula as a result of the pipeline construction. The reports were requested by the public finance institutions, including EBRD and export credit agencies of the US, UK and Japan, to assess whether they should finance the project.

The groups also wrote to EBRD President Jean Lemierre about the falsified reports, stating, “This represents an extremely serious matter that indicates that SEIC is not accurately representing events that have bearing on compliance with your policies. This breach of policy and of trust demonstrates that SEIC has failed one of your most important tests and provides yet another reason why EBRD must decline financing for Sakhalin II.”

For more information

Petr Hlobil
CEE Bankwatch Network
Tel: +420 603 154349
CEE Bankwatch Press Release