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Article

16 Oct 2006

Author:
Anatoly Medetsky, Moscow Times

19 Lukoil Licenses Are Under Threat [Russia]

Lukoil on Friday became the latest oil major to face pressure from the government over purported environmental violations and development delays...violations...included heavy pollution and illegal cutting of trees to make way for oil pipelines..."...[T]he threat for the licenses to be withdrawn is quite serious," said Natural Resources Ministry spokesman Yevgeny Snegiryov, Reuters reported. Lukoil said it was told to deal with the violations in August and September and that it was given up to six months to comply. The company promised in a statement to "do its best" to keep the licenses...ConocoPhillips owns almost 20 percent of the company. The government last month accused Sakhalin-2, a Royal Dutch Shell-led project, of breaching environmental legislation. That move came in a dispute over Shell's decision to raise development costs, which would delay the time it took Russia to get oil. More environmental problems may arise when Natural Resources Ministry officials visit the Khanty-Mansiisk autonomous district later this week to inspect compliance of other oil companies, including Rosneft, Surgutneftegaz and TNK-BP.