U.S. oil major ConocoPhilips and JV partner CNOOC are set to repay fishermen in the Bohai Bay area as a major discovery is announced in the area.
The preliminary agreement would pay CNY 305 million ($48 million) to Chinese fishermen working in the Bohai Bay area after a major spill last summer. The compensation will be paid by CNOOC and ConocoPhilips through the northern city of Qinghuadao's government, who will distribute it among locals businesses affected by the spill.
CNOOC rig in Bohai Sea Image: CNOOC |
The series of three oil leaks occurring at the Penglai 19-3 and Suizhou 36-1 oil fields between June and July 2012, polluting a total area of around 4,250 square kilometres (sq. km). The settlement will only compensate fishermen operating in the 840 sq. km of spills at the Penglai 19-3 field, which is jointly owned by ConocoPhillips and CNOOC in a 49/51% split. Shut down since September 2011, China's largest offshore oilfield began operations again in March, with full production set to be restored "imminently".
The compensation news comes at the same time as CNOOC has announced a major oil find in its Penglai 9-1 Field and a further discovery in the PL15-2-1 area. Situated in the eastern part of Bohai Bay, the 9-1 wells produced some 700b/d during tests, which indicate a "large oil field" according to the company.