ConocoPhillips’ Penglai 19-3 Field Resumes Production (China)

CNOOC: Penglai 19-3 Back to Production

China’s State Oceanic Administration (SOA) has given a green light to ConocoPhillips China to resume production from Penglai (“PL”) 19-3 oilfield, in Bohai Bay, following two oil leak incidents which occurred in 2011.

Following a series of rectification measures, PL19-3 oilfield has recovered to normal state, with operating conditions. COPC is permitted to gradually resume the production of the PL 19-3 oilfield.

CNOOC, the parent company of the CNOOC Limited, is required by the SOA to continue to supervise and assist COPC in implementing the newly approved ODP, EIA as well as complying with oil and gas production standards, to ensure production safety of the oilfield.

PL19-3 oilfield is operated under a Production Sharing Contract (“PSC”). COPC is the Operator and responsible for the management of daily operations of the oilfield. CNOOC Limited holds 51% of participating interest during the development and production phase under the PSC.

Penglai 19-3 Incidents – June 2011

In June 2011, ConocoPhillips China (COPC) experienced two unrelated releases of fluids in Bohai Bay’s Peng Lai 19-3 (PL19-3) oil field.

The incidents resulted in approximately 723 barrels (115 cubic meters) of oil and 2,620 barrels (416 cubic meters) of mineral oil-based drilling mud seeping into Bohai Bay.

ConocoPhillips China Inc. (COPC) and CNOOC last year agreed to 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.

Offshore Energy Today Staff, February 18, 2013