The company will concentrate on the Lunskoye field and Aniva Bay until “technical work” is completed which will allow for the resumption of construction.

According to David J. Greet, Sakhalin Energy’s Phase 2 Project Director, “Sakhalin Energy wants to ensure that the Phase 2 project can be developed in line with our environmental standards and commitment to mitigate potential impacts to the Western Grey Whale.”

“As a consequence, before construction of the Piltun pipelines start, further technical work will be executed to ensure that we have adequate protection measures in place,” added Greer. This work is scheduled for summer 2004.

The need to shift pipeline construction comes on the back of the decision to ensure greater ice protection by burying the pipeline deeper, which would have called for larger and noisier dredging vessels. The added noise would have affected the whales’ summer migration to Sakhalin.

Sakhalin Energy insists the rescheduling will not affect the company’s first delivery in 2007.