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ConocoPhillips sets up oil spill fund for Bohai Bay field

ConocoPhillips plans to establish a fund related to June oil spills at Penglai 19-3 field in Bohai Bay, saying the fund will be designed to address ConocoPhillips’s responsibilities in accordance with relevant laws of China and to benefit the general environment in Bohai Bay (OGJ Online, Sept. 6, 2011).

“ConocoPhillips deeply regrets these incidents and apologizes for the impact that the incidents have had on the Chinese people and the environment,” said James J. Mulva, ConocoPhillips chairman and chief executive officer.

The company completed a temporary shutdown of oil and natural gas production at Penglai 19-3 field in Bohai Bay as ordered by China’s State Oceanic Administration (SOA) while ConocoPhillips and its partner, China National Offshore Oil Corp., develop and submit a compliance plan to SOA.

As operator, ConocoPhillips China responded to two spills on June 4 and June 17 that released an estimated 700 bbl of oil into Bohai Bay and 2,500 bbl of mineral oil-based drilling mud onto the seabed.

SOA ordered ConocoPhillips on Sept. 2 to suspend water injection, drilling, and production across the field. ConocoPhillips China is working with Chinese authorities and CNOOC regarding operation of the spill-related fund. No dollar amount was specified for the fund.

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