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CNOOC, ConocoPhillips agree over Bohai Bay oil leaks

Updated: 2012-01-25 15:11

(Xinhua)

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BEIJING - China National Offshore Oil Corp. (CNOOC) said Wednesday that it has reached an agreement with ConocoPhillips China and the Ministry of Agriculture to settle compensation claims stemming from oil spills in north China's Bohai Bay.

Under the agreement, ConocoPhillips will pay 1 billion yuan (158.73 million U.S. dollars) to settle public and private claims of potentially affected fishermen in relevant Bohai Bay communities, according to a statement on CNOOC's website.

ConocoPhillips and CNOOC will earmark 100 million yuan and 250 million yuan, respectively, from their previously announced environmental funds for the restoration, maintenance, environmental monitoring and scientific research of fishery resources, according to the statement.

The severe oil spills in the Penglai 19-3 oilfield in Bohai Bay have polluted over 6,200 square km of water since June, an area about nine times the size of Singapore, and caused huge losses in the tourism and aquatic farming industries of Liaoning and Hebei provinces.

The Penglai 19-3 oilfield is China's largest offshore oilfield, with daily production of about 160,000 barrels. CNOOC holds a 51-percent stake in the field, while ConocoPhillips has 49 percent.

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