ConocoPhillips, CNOOC agree to pay for Bohai Bay oil spill | Oil & Gas Journal

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.

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