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August 26, 2011

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US oil firm faces spill cleanup deadline

UNITED States oil giant ConocoPhillips has been ordered to finish cleaning up oil spills in north China's Bohai Bay before the deadline set by the government or the company will face "enhanced supervision" if it does not do so, a top Chinese maritime official said yesterday.

The State Oceanic Administration is collecting evidence and gauging the ecological impact of the spills as it prepares for possible legal action against the company, according to Liu Cigui, head of the SOA.

"Any company that damages China's oceanic environment must pay for their actions," Liu said during a teleconference on the handling of the incident, during which he referred to the spills as the "worst oceanic environmental accident" in Chinese history.

During a press conference held on Wednesday, Georg Storaker, president of ConocoPhillips China, said his company will be able to finish cleaning up the spills before the August 31 deadline.

The SOA previously ordered the company to "take all effective measures" to clean up the spills and eliminate any possible oil spill sources before the end of the month. The SOA said on Wednesday that it will sue ConocoPhillips over the spills after it finishes assembling its legal team.

Storaker said his company has not yet received any demand for compensation but insisted it will discuss the issue with Chinese authorities in the event of a lawsuit.

Responding to Storaker's remarks, Liu said China will demand compensation for the damage done to its environment by the spills and consider the "overlapping impact" caused by them.

"Regarding ConocoPhillips' performance in containing the oil spills, we will let facts and technicians speak," Liu said.



 

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