English > Industry > Industry-Feature Story>ConocoPhillips to Establish Second Bohai Bay Fund

ConocoPhillips to Establish Second Bohai Bay Fund

09-20 16:35 Caijing

The U.S-based ConocoPhillips said Sunday that it would establish a second fund to address environmental issues in Bohai Bay

The U.S-based ConocoPhillips said Sunday that it would establish a second fund to address environmental issues in Bohai Bay, China, working with its co-venturer, China National Offshore Oil Corporation (CNOOC) or other appropriate parties.

“The company also reaffirmed its previous September 6, 2011 announcement to establish a separate fund to provide fair and reasonable compensation for any damages arising from the incidents at the Penglai 19-3 field in Bohai Bay,” the company said in a statement on its website.

The incidents in Bohai Bay, which occurred on June 4 and June 17 respectively, resulted in a total release of approximately 700 barrels (115 cubic meters) of oil into Bohai Bay and approximately 2,500 barrels (400 cubic meters) of mineral oil-based drilling mud on the seafloor, according to the statement.

It added that Platform B fault has been sealed and the Platform C well permanently plugged and abandoned.
As part of a phased recovery program, ConocoPhillips is also preparing a new marine Environmental Impact Assessment and updating the Overall Development Plan. Those plans are being carried out under the supervision of CNOOC and Chinese authorities.

However, details of the two funds, one is focused on damage compensation and the other environmental recovery, have not yet to be released.

“We could just say that the company has an intention to establish funds, but there are none virtually,” the Economic Information Daily reported, quoting a member of a legal team organized by local marine management authority.

The person also said that even the funds were established, they could not produce a virtual impact on the company’s legal obligations of compensation for damages on the marine ecosystems, nor could it help the company avert such obligations.

Please contact Caijing Magazine for any inquiries. Reproduction in whole or in part without Caijing's permission is prohibited.
[ICP License: 090027] IDC License:[B2-20040250] Advertising Business License:[京海工商广字第0407号] 京公网安备11010502005607号
Copyright by Caijing. All Rights Reserved