ConocoPhillips to establish fund for Bohai Bay oil spill

Reuters News
Posted: Sep 07, 2011 12:53 AM
ConocoPhillips to establish fund for Bohai Bay oil spill

(Reuters) - Energy giant ConocoPhillips said it will establish a fund to address the company's responsibilities related to the oil spill at China's Bohai Bay.

ConocoPhillips said the proposed fund will be designed to benefit the general environment in Bohai Bay.

"ConocoPhillips deeply regrets these incidents and apologizes for the impact that the incidents have had on the Chinese people and the environment," Chief Executive James Mulva said in a statement.

On September 2, China's State Oceanic Administration ordered a subsidiary of ConocoPhillips to halt all operations at the Penglai 19-3 oilfield after the company failed to seal a leak that has lasted more than two months.

ConocoPhillips China will seek to work with Chinese authorities and its co-venturer in the Peng Lai 19-3 field, CNOOC Ltd, regarding the establishment and operation of the fund, the company said.

ConocoPhillips owns a 49 percent stake in the oilfield and acts as the operator, while China's top offshore oil and gas producer CNOOC has a 51 percent stake.

(Reporting by Sakthi Prasad in Bangalore; Editing by Vinu Pilakkott)