ConocoPhillips, CNOOC agree to pay for Bohai Bay oil spill

April 27, 2012

ConocoPhillips and CNOOC agreed to pay 1.68 billion yuan ($267 million) in compensation for a 2011 oil spill in Bohai Bay off northern China, China's State Oceanic Administration (SOA) said Apr. 27.

Paula Dittrick

ConocoPhillips and CNOOC agreed to pay 1.68 billion yuan ($267 million) in compensation for a 2011 oil spill in Bohai Bay off northern China, China's State Oceanic Administration (SOA) said Apr. 27.

The spill was reported at Penglai 19-3 field starting in June and was sealed in late October 2011 (OGJ Online, Nov. 11, 2011).

ConocoPhillips China, which operates Penglai 19-3 with a 49% share, was ordered to halt operations in the field during early September. ConocoPhillips has estimated 700 bbl of crude and 2,500 bbl of oil-based drilling mud were spilled. CNNOC holds 51% interest under a production-sharing contract.

The compensation will be used for ecological and environmental protection in Bohai Bay along with habitat restoration and oil spill research, SOA said.

About the Author

Paula Dittrick | Senior Staff Writer

Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.

Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.