US ConocoPhillips prepares second fund for Bohai Bay oil spill

19 September 2011 08:25  [Source: ICIS news]

GUANGZHOU (ICIS)--US ConocoPhillips is on track to set up a second fund to address the environmental issues resulting from an oil spill at the Peng Lai 19-3 oilfield in China’s Bohai Bay, the company said over the weekend.

The company reaffirmed its announcement on 6 September to establish a separate fund to provide compensation for damages arising from the disaster, ConocoPhillips said in a statement.

The company did not disclose the amount of the fund in the statement.

ConocoPhillips China (COPC) is continuing its cleaning efforts and taking additional precautionary measures to prevent recurring incidents, the statement said.

Meanwhile, the firm is preparing a new marine Environmental Impact Assessment (EIA) and revising its Overall Development Plan (EDP) as part of a phased recovery programme, the statement added without confirming the date of completion for the tasks.

The company was ordered by China’s State Oceanic Administration (SOA) to suspend production at the Peng Lai 19-3 oilfield on 2 September, the SOA said in an earlier statement.

COPC can only resume production at the oilfield when the EIA and ODP have been approved, the SOA statement added.

In addition, the SOA is filing a lawsuit to claim compensation for damages done as a result of the oil spill.

Peng Lai 19-3 is China’s biggest offshore oilfield in which COPC holds a 49% stake and China National Offshore Oil Corp (CNOOC) owns the remaining 51%.

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By: Fanny Zhang
+65 6780 4359

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