China: CNOOC to Resolve Peng Lai Spill Claims

CNOOC Limited said today that its parent company, China National Offshore Oil Corporation (“CNOOC”), has reached an agreement with China’s Ministry of Agriculture and ConocoPhillips China Inc. (“COPC”) to resolve fishery compensation issues for Peng Lai 19-3 oil spill incident.

Under this agreement, COPC will put up RMB 1 billion to settle claims of losses related to marine products cultivation and natural fishery resources in the affected areas of the Hebei and Liaoning provinces. COPC and CNOOC will also designate a portion from their committed marine environmental and ecological protection funds, which are RMB 100 million and RMB 250 million, respectively, to be used for natural fishery resources restoration and preservation, fishery resources environmental monitoring and assessment, as well as related scientific research work.

” As the non-Operator, the Company will continue to support and assist COPC to deal with the subsequent issues in a proper manner.” said the company in a press release

ConocoPhillips Violates Development Plan

China’s State Oceanic Administration in mid November announced a statement in which it blames ConocoPhillips for negligence saying that the company has violated the overall development plan in its production at Penglai 19-3 oilfield, causing substantial damage to the marine environment

The Peng lai oil spill has stimulated the government into thinking of revision of joint offshore oil exploration activities with foreign companies, said China Daily recently.

CNOOC in October admitted that its 3Q oil production was hit by Peng lai oilfield shutdown.

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Offshore Energy Today Staff, January 25, 2012