Oil firm ordered to stop work after leaks report
By Fu Chenghao |
September 3, 2011, Saturday
|
Print Edition
Print Edition
China's maritime authority yesterday ordered ConocoPhillips to halt operations at the Penglai 19-3 offshore oilfield after the oil producer failed to seal off oil leaks before Wednesday's deadline.
The US company must immediately stop drilling and oil and gas production at the oilfield, in China's Bohai Bay, and take "strong and effective" measures to seal the sources of the spills and prevent further leaks, according to a statement issued by the State Oceanic Administration yesterday.
Two oil spills, involving 3,200 barrels of oil and drilling fluids, occurred at two platforms in the Penglai 19-3 field in June and spread up to 5,500 square kilometers in the Bohai Bay, China's main fisheries region.
ConocoPhillips, the operator of the oilfield with a 49 percent stake, has been held accountable for the spills. China's CNOOC Ltd owns the remaining 51 percent.
The SOA called the spills "the most serious marine ecological incident in China" and accused ConocoPhillips of being slow in dealing with the leaks.
On Wednesday, the deadline imposed by the SOA, the company submitted a report to the SOA saying it had met a requirement to seal the fault causing the leaks and end risks of new seeps.
But the SOA said yesterday that leaks hadn't been fully sealed and the oil was not fully cleaned up. That meant ConocoPhillips had failed to meet the requirements, the SOA said, citing a "unanimously agreed" conclusion of its inspection team, which has employed satellites, airplanes, ships and underwater robots to evaluate the cleanup work.
"There could be risks of more damage to the seabed and of new oil leaks" if the current situation continues, the SOA said.
It repeated criticism over ConocoPhillips' containment measures, deeming them not a permanent solution.
"ConocoPhillips did not operate in a prudent and responsible way," the statement said.
"The Penglai 19-3 field spills are an accident caused by negligence."
The SOA said that it had asked ConocoPhillips to make a new environmental impact assessment report about the spills before production resumes. The statement ordered ConocoPhillips to accept CNOOC'S "strict supervision" in preventing any further spills.
ConocoPhillips China couldn't be reached for comment yesterday.
The Penglai 19-3 field, home to seven production platforms, is the largest offshore oilfield in China, with net crude oil production averaging about 56,000 barrels per day last year.
CNOOC last week cut its full-year output target in part because of the spills.
Meanwhile, the SOA confirmed it is working on details of seeking compensation from ConocoPhillips for ecological damage caused by the leaks.
The US company must immediately stop drilling and oil and gas production at the oilfield, in China's Bohai Bay, and take "strong and effective" measures to seal the sources of the spills and prevent further leaks, according to a statement issued by the State Oceanic Administration yesterday.
Two oil spills, involving 3,200 barrels of oil and drilling fluids, occurred at two platforms in the Penglai 19-3 field in June and spread up to 5,500 square kilometers in the Bohai Bay, China's main fisheries region.
ConocoPhillips, the operator of the oilfield with a 49 percent stake, has been held accountable for the spills. China's CNOOC Ltd owns the remaining 51 percent.
The SOA called the spills "the most serious marine ecological incident in China" and accused ConocoPhillips of being slow in dealing with the leaks.
On Wednesday, the deadline imposed by the SOA, the company submitted a report to the SOA saying it had met a requirement to seal the fault causing the leaks and end risks of new seeps.
But the SOA said yesterday that leaks hadn't been fully sealed and the oil was not fully cleaned up. That meant ConocoPhillips had failed to meet the requirements, the SOA said, citing a "unanimously agreed" conclusion of its inspection team, which has employed satellites, airplanes, ships and underwater robots to evaluate the cleanup work.
"There could be risks of more damage to the seabed and of new oil leaks" if the current situation continues, the SOA said.
It repeated criticism over ConocoPhillips' containment measures, deeming them not a permanent solution.
"ConocoPhillips did not operate in a prudent and responsible way," the statement said.
"The Penglai 19-3 field spills are an accident caused by negligence."
The SOA said that it had asked ConocoPhillips to make a new environmental impact assessment report about the spills before production resumes. The statement ordered ConocoPhillips to accept CNOOC'S "strict supervision" in preventing any further spills.
ConocoPhillips China couldn't be reached for comment yesterday.
The Penglai 19-3 field, home to seven production platforms, is the largest offshore oilfield in China, with net crude oil production averaging about 56,000 barrels per day last year.
CNOOC last week cut its full-year output target in part because of the spills.
Meanwhile, the SOA confirmed it is working on details of seeking compensation from ConocoPhillips for ecological damage caused by the leaks.
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