Banks and investors in the Sakhalin II project have been told by their own independent consultancy that oil spill risks to the rare Western Gray Whale are greater than they were once told, but “still low” and not the development’s worst “erring”.

Consultancy AEA said the worst environmental oversteps accompanied the routing of onshore pipelines, where erosion and earthquakes were the dangers.

“Despite initial execution problems, final reinstatement of the (pipeline) route to appropriate standards is achievable”, the AEA report said, adding that erosion control was already being addressed.

Russian regulators halted Sakhalin II development citing environmental concerns, just as project costs had “crept” to levels that spelled delays for state revenue-taking.