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August 17, 2011

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Compensation for oil spill sought

China's maritime regulator will pursue compensation from ConocoPhillips and CNOOC for the June oil spills that polluted Bohai Bay.

The State Oceanic Administration said yesterday the final amount it may seek hasn't been determined. That statement amounted to a denial of an Economic Information Daily report that said the administration was working on plans to seek over 100 million yuan (US$15.6 million) in compensation for the oil leaks in the Penglai 19-3 oil field.

"If the scope of the pollution continues to expand, the scale of the compensation could also grow," the newspaper quoted an unidentified source at the SOA as saying.

The SOA's North China Sea branch posted a notice on its website on Sunday seeking law firms to help sue the companies responsible for the ecological damage caused by the oil leaks.

ConocoPhillips China, a unit of the US oil giant ConocoPhillips that operates the field, said last Friday that 2,500 barrels of oil and mud had leaked from three of its platforms. The Pengali 19-3 is China's largest offshore oil field, with daily production of about 160,000 barrels.

The US company has a 49 percent stake in Penglai 19-3 while CNOOC, China's top offshore oil producer, holds the remainder. ConocoPhillips has been held accountable for the oil leaks because it's the operator.

The SOA has said ConocoPhillips could face a fine of up to 200,000 yuan for the accidents under Chinese law, but the company would also probably have to pay more for ecological damage.

CNOOC said yesterday it had detected oil rising from the seabed near its Penglai 19-3 oilfield Platform C, Xinhua news agency reported.

The company spotted the new oil spill on Sunday, and it is watching the area closely to determine the exact location of the leak.




 

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