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July 12, 2011

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Spillage continues near oil platforms

A SMALL amount of oil continues to leak from the Penglai 19-3 field in Bohai Bay where two oil spill incidents occurred last month, the State Oceanic Administration announced yesterday.

A small spill was found at Platform C and there are also signs that a spill could occur near Platform B, according to a report by the administration after a Sunday on-site inspection.

The 19-3 field, owned by China's CNOOC Ltd and US-based ConocoPhillips, suffered two oil leaks last month at the two platforms.

The SOA said a small amount of oil sheen can still be observed near the platforms though the incident at Platform B was under control on June 19 and that at Platform C on June 21.

An investigation into the cause of the spills is progressing slowly, the Xinhua news agency said.

The spills, which polluted 840 square kilometers of sea in the Bohai Bay, sparked public anger over delayed and under-reported disclosures. Oceanic authorities have held United States company ConocoPhillips accountable as it was the operator of the field.

The SOA said the maximum penalty for sea pollution was 200,000 yuan (US$30,926) but the central government could demand further compensation from Conoco based on an environmental assessment.

Zhang Xia, of Zurich Insurance's Beijing branch, said the cost of damaging the environment in China was low at present in the absence of a complete mechanism to determine responsibility.




 

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