A Review of AEA’s Independent Environmental Consultant Final Report to Agency Lenders Regarding Sakhalin II Phase 2
Prepared by Pacific Environment and Sakhalin Environment Watch
November 7, 2007
EXTRACTS
At an October 8, 2007 Moscow press conference, SEIC announced that the “independent” Report gives Sakhalin II a “clean bill of health.” However, a review of the Report confirms that it is neither independent, nor does it give Sakhalin II a clean bill of health.
…the Report records systematic and chronic violations of policies and standards of international lenders and other standards. Furthermore, the Report documents how SEIC has subverted key environmental assessment processes relevant to international lenders in order to make the results of these assessments meaningless. Finally, the Report documents that if public international financing is provided to SEIC for Sakhalin II, SEIC would be in immediate default on contractual terms of the financing due to numerous material breaches of the international lenders’ policies and standards agreed to by SEIC.
Since 2001 the UK-based consulting firm, AEA, has worked under contract with the Bermuda-registered Sakhalin Energy Investment Company, Ltd. (SEIC) to review the environmental and social impacts of the Sakhalin II oil and gas project, located at Sakhalin Island, Russian Far East. This review is required by public financial institutions which are considering financing for the project.1 In September, 2007, SEIC released an AEA report, entitled, “Independent Environmental Consultant Final Report – Agency Lenders: Sakhalin II Phase 2 Project Health, Safety, Environmental and Social Review” (hereafter “the Report”).
While the Report is a requirement of potential public lenders, it is not an independent report commissioned by these lenders. Rather, the Report was financed by SEIC; it lists SEIC as its “customer;” and states that it was prepared based on a contractual Terms of Engagement issued by SEIC.2 Efforts to obtain the public disclosure of this Terms of Engagement have been unsuccessful. While this method of developing consultant reports for lenders has become common practice, the resulting conflict of interest nonetheless renders the Report as something other than independent.
LINK TO READ THE REPORT
31 PAGE REPORT: SAKHALIN 2: MATERIAL BREACH
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
