• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 2 days Shell Restarts Bonny Light Exports
  • 2 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 2 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 3 days Kinder Morgan Warns About Trans Mountain Delays
  • 3 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 4 days Exxon Starts Production At New Refinery In Texas
  • 4 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 5 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 5 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 6 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 6 days Aramco Says No Plans To Shelve IPO
Alt Text

Is OPEC Considering Deeper Output Cuts?

You could argue OPEC and…

Alt Text

Are Combustion Engines Reaching Peak Demand?

As countries announce plans to…

Alt Text

Oil Shows Weakness, But Don’t Expect A Plunge

Oil prices remained firm this…

Mark Nicholls

Mark Nicholls

Mark is a writer for Environmental Finance. Environmental Finance is the leading global publication covering the ever-increasing impact of environmental issues on the lending, insurance,…

More Info

WestLB is the First Bank to Refuse Finance to Offshore Oil Rigs in the Arctic

WestLB is the First Bank to Refuse Finance to Offshore Oil Rigs in the Arctic

WestLB will not provide finance to any offshore oil and gas drilling in the Arctic, according to a new environmental policy that is understood to be the first of its kind.

In an eight-point statement relating to financing offshore drilling, published this week, the German bank says that “the oil rig (or vessel etc.) may not perform any exploration or production activities within the 10°C-isotherm, both at the beginning and throughout the life of the financing.”

The 10°C-isotherm is the area where the average temperature for the warmest month is below 10°C.
This is the first time a bank has explicitly excluded activity in this geographic area, believes Dustin Neuneyer, Düsseldorf-based sustainability manager, group development, at the German corporate and investment bank.

Oil Rig Fire
Oil spills: bad enough in warm waters, let alone cold (Photocredit)

“The further you get into the icy regions, the more expensive everything gets and there are risks that are hard to manage,” he says. For example, remediation of any spills “would cost a fortune”, and natural processes by which spilt oil would be broken down are slower or non-existent at freezing temperatures.

“There are projects that are evidently unsustainable in an encompassing sense. For WestLB, the risks and costs are simply too high.”

Environmental groups are becoming increasingly concerned about oil and gas exploration in polar regions, as rising oil prices encourage exploitation of ‘frontier’ hydrocarbon reserves, and the increasing accessibility of these regions as average global temperatures rise.

The statement also requires that offshore drilling activities funded by WestLB must use best available technology, and use the “highest technical safety standards”, certified by an independent third party.

It also insists that “ultimate environmental responsibility must explicitly be assigned to concessionaires in the operating agreements”.

Neuneyer said that the bank has been implementing these issues in offshore financings in recent years, but this is the first time they have been codified and spelt out. He was unable to give a figure for the volume of lending involved, but said that the offshore sector represented “a significant share in the bank's energy project finance activities”.

He said that the bank so far has not turned away any business as a consequence of applying these principles, but it had changed several projects and he believes that it will, over time, change the overall mix of deals seeking finance in the banking market.

“Other banks contacted us and are very interested in this approach and policy,” Neuneyer added.

By. Mark Nicholls

Source: Environmental-Finance




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News