CNOOC, ConocoPhillips to Pay USD 266 mln for Penglai Oil Spill Damage (China)

CNOOC Limited stated today that according to the news of its parent company, China National Offshore Oil Corporation (CNOOC), the compensation for marine ecological damage caused by Penglai 19-3 oil spill accident in Bohai Bay was in significant progress with the great effort made by the State Oceanic Administration of People’s Republic of China (“SOA”).

ConocoPhillips China Inc. (COPC) and CNOOC will pay an aggregate amount of RMB 1.683 billion (266.7 million), among which COPC will contribute RMB 1.09 billion (172.7 million) to compensate for the marine ecological damage caused by the oil spill accident. In addition, CNOOC and COPC will each fund RMB 0.48 billion and RMB 0.113 billion to resume the social responsibility for Bohai environmental protection. According to SOA release, the above mentioned funds will be used for ecological and environmental protection in Bohai, reduction on oil pollutants discharge at entrance to Bohai, habitat restoration of damaged marine ecological environment, as well as monitoring and researching on oil spill impact on ecological environment. The Company said it would continue to support and assist COPC to deal with the subsequent issues.

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Source: CNOOC Limited, April 27, 2012