An official SOA report concludes that Penglai 19-3 leak was due to inadequate safety procedures by ConocoPhillips at the site.
China's worst incident of offshore maritime pollution was caused as a result of failure to follow protocol by US energy giant ConocoPhillips, according to a new report by China's State Oceanic Administration (SOA). Official findings show that the spill, which covered over 6,200 square kilometres in the country's northeastern Bohai bay area, was a result of ConocoPhillips failing to implement adequate safety features at the Penglai 19-3 oilfield.
Houston-based ConocoPhillips was supposed to install an oil production system called 'separate zone water flooding technology' to control pressure and increase stability on the seabed, but neglected to do so. As a result, pressure changes at the exit of a water flooding well on platform B led to oil leakage.
The report also shows that the spills near platform C occurred as the company failed to follow proper drilling protocol. SOA findings contradict initial ConocoPhillips reports, which suggested that a natural fault activated by reservoir pressure was the cause of the spills.
In a company statement, ConocoPhillips expressed its regret at the spill and insisted it had remained cooperative throughout the investigation. China National Offshore Oil Corporation (CNOOC which owns the oilfield in a joint venture with ConocoPhillips, has agreed to assist the US firm in dealing with the subsequent issues. CNOOC has also claimed that all leaks have since been stopped, however there are recent reports of a 20,000 square-metre oil sheen near platform C.
Local environmental groups are seeking compensation from ConocoPhillips, as are local fisheries, including the Laoting Fisheries Association, which is claiming losses of more than 300 million yuan ($47m) as a direct result of the spill.
The various groups hope that the recent findings will give weight to their cases against the US firm. The SOA have yet to reveal when it will file a state lawsuit.
ConocoPhillips has also drawn criticism for supposedly covering up the incident, which may have begun as early as June 4th, but was not officially reported until June 30th. Furthermore, production was halted as late as September 2nd, which many feel led to excess spillage. Ma Jun, director of the Institute of Public and Environmental Affairs, claimed the disparity between SOA and internal investigations proved that “ConocoPhillips not only hid the incident from the public, but also lied about the reason.”