Russian prosecutors: Kolskaya rig was drilling illegally

The oil rig Kolskaya, which capsized and sunk during a storm near Sakhalin on 18 December, had been drilling on the Kamchatka continental shelf illegally, according to the Russian paper Gazeta.ru. The Kamchatka regional environmental prosecutor had lodged a lawsuit against Gazflot (company commissioning the drilling, subsidiary of the Russian gas major Gazprom) for commencing drilling despite the negative conclusions of the compulsory environmental impact assessment. The lawsuit has now been recalled as “all of the violations have been eliminated”, says the prosecutor.

Following the accident, only 14 of the 67 crew members have been found alive. In a move reminiscent of BP a year and a half ago, Gazprom denied having any responsibility for the drilling rig. The company’s explanation: the rig had finished its work for Gazprom and was on its way home.

Gazeta.ru: Relatives of the missing rig workers blame the management of Arktikmorneftegazrazvedka (drilling contractor and another Gazprom subsidiary). According to his daughter, Mikhail Tersin, head of the towing operation was forced to take up the position, having previously refused as he understood it would be unsafe. The company claims the towing operation was carried out in accordance with all legal requirements.

More on Prirazlomnaya

WWF Russia has just released a comparative analysis of a number of Gazprom’s projects, including the notorious Prirazlomnaya rig.

Prirazlomnaya's ladder collapsing during a small-scale storm in early October

Screenshot of a video of Prirazlomnaya's ladder collapsing during a small-scale storm in early October. Photo: WWF-Russia

On 6 September Gazprom held a press conference … practically in response to the publicity campaign by NGOs. At the conference, Gazprom Head of offshore technology Vladimir Vovk conceded that a finalised technical plan did not exist by the time the decision to build Prirazlomnaya was taken. Moreover, as construction went on, the client refused the initial project to save costs.

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Tax breaks ‘crucial’ for Arctic oil

On Friday 14th October, Texas governor and US presidential candidate Rick Perry unveiled his ‘jobs and energy’ policy which “resembles a wish list for the oil and gas industry” according to the New York Times. The plan, available online, involves scaling down the “job-killing” Environmental Protection Agency and opening up the Arctic National Wildlife Refuge for oil drilling. It also involves “leveling the playing field for all energy industries by eliminating subsidies” – hang on, double check – yes, Perry means eliminating “subsidies and loan guarantees for inefficient and uncompetitive green energy programs”.

The argument that cleaner energy would be economically uncompetitive without subsidies  is not new – what’s less commonly discussed is the level of subsidies needed for new oil extraction. Continue reading

Prirazlomnaya: monstrous pioneer of Arctic drilling

David Cameron today is taking UK oil chiefs on his trade mission to Russia to promote business links following the failure of the BP/Rosneft Arctic deal. Meanwhile, Russia’s first Arctic offshore oil drilling platform Prirazlomnaya has just been installed 60 miles off the coast of Novaya Zemlya, in the Pechora Sea. High-priority national project and top investment opportunity in Russia, Arctic drilling in practice is not only dangerous but suspicious business: here is the darker side of the story of Prirazlomnaya, as uncovered by our Russian colleagues.

President Medvedev with Arctic oil rig model. Source: kremlin.ru

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BP’s extraction operations in Brussels

Only in Brussels for 90 minutes, so not long enough to visit BP’s office on Rondpoint Schumann, adjacent to the European Commission.

This provides the company’s easy access for major EU lobbying of various EU institutions. BP — Extracting Influence at the heart of the EU, a report published earlier in 2009 by Corporate Europe Observatory and PLATFORM unmasked BP’s attempts to harness EU foreign policy and legislative power for its own benefit.

The report reveals the oil giant’s close relationship with decision makers and highlights how the company has convinced Commissioners and others that BP’s interests are in the EU’s interest – allowing it to promote profit-driven approaches to climate change through emissions trading. The company has also exploited the EU’s diplomatic muscle in Russia encouraging risky dependence on Russian gas.

Howard Chase, BP’s Head of European Affairs, chairs the Industry Advisory Panel of the Energy Charter, while BP Chairman Peter Sutherland chaired the Foreign Economic Relations Working Group at the European Roundtable of Industrialists. BPEurope’s efforts regularly pay off, with the European Commission and other EU institutions regularly intervening on behalf of the company. Arguments between BP management and Russian shareholders of TNK-BP led to several EUCommissioners pressuring Russian President Putin to make BP’s case.

BP Europe staff know their company well. Rather than relying on career lobbyists, BP rotate staff from their flagship producing regions into Brussels. One of the key BP figures in Azerbaijan responsible for creating the Baku-Tbilisi-Ceyhan pipeline and the Azeri-Chirag-Guneshli oil field has been working for BP Europe the last few years.