ConocoPhillips China halts production at Peng Lai 19-3 oilfield

05 September 2011 06:26  [Source: ICIS news]

GUANGZHOU (ICIS)--ConocoPhillips China (COPC) is suspending production at the Peng Lai 19-3 oilfield at China’s Bohai Bay as ordered by the country’s State Oceanic Administration (SOA) on the oil spill issue, the company said over the weekend.

COPC said in a statement that it started suspension steps on the evening of 2 September and expects the suspension to be fully completed by Monday.

The SOA on 2 September ordered COPC, the operator of Peng Lai 19-3, to suspend drilling, water injection and production at the oilfield.

The administration found that, unlike what COPC said in its own reports, the company had neither completely sealed off spill sources nor completely screened out the spill risks and therefore, the company must take effective measures to continue screening out the potential spill risks, seal all sources of spillage and complete the cleanup work, SOA said on its website.

COPC submitted its reports to SOA on 31 August and said that it had fulfilled those tasks.

China National Offshore Oil Corp (CNOOC), which has a 51% stake in the oilfield, said that its net production at Peng Lai 19-3 will be reduced by approximately 40,000 bbl/day following the latest suspension.

Before this, production halts at Platforms B and C of the oilfield that started on 13 July already reduced its output there by some 22,000 bbl/day.

The SOA has also ordered COPC to recompose the Oceanic Environmental Impact Assessment (EIA) for the development of Peng Lai 19-3 and revise the Overall Development Plan (ODP) of the oilfield.

Production can only be resumed after the EIA and ODP are approved, SOA said on its website.

Peng Lai 19-3 is China’s biggest offshore oilfield. COPC holds a 49% stake in the oilfield.

By: Fanny Zhang
+65 6780 4359

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