Oil and Gas

Bank DNB says considering pulling financing on N. Dakota pipeline

OSLO, Nov 7 (Reuters) - Norwegian bank DNB will reconsider its participation in the financing of the North Dakota oil pipeline if concerns raised by Native American tribes against its construction are not addressed, it said late on Sunday.

Local authorities and protesters have been clashing over Energy Transfer Partner’s $3.8 billion Dakota Access pipeline project, which would offer the fastest and most direct route to bring shale oil from North Dakota to Illinois.

Native American tribes contend that the pipeline would disturb sacred land and pollute waterways supplying nearby homes.

“DNB looks with worry at how the situation around the pipeline in North Dakota has developed. The bank will therefore take initiative and use its position to bring about a more constructive process to find a solution to the conflict,” Norway’s largest bank said in a statement.

“If these initiatives do not give appeasing answers and results, DNB will consider its further involvement in the financing of the project.”

The bank did not say in its statement how much financing it is contributing to the project. Norwegian daily Aftenposten reported the bank is responsible for some 2.8 billion crowns ($342.36 million) in loans to build the pipeline, or close to 10 percent of the cost of the project. ($1 = 8.1785 Norwegian crowns) (Reporting by Gwladys Fouche, editing by Louise Heavens)