Oil companies settle over damages in China's Bohai Bay spill

Oil companies settle over damages in China's Bohai Bay spill

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ConocoPhillips (COP.NYSE) and China National Offshore Oil Corporation (subsidiary CNOOC Limited; CEO.NYSE, 0883HKG) will pay more than US$250 million to settle government claims over damage done in a June oil spill in Bohai Bay off the coast of Tianjin, The Wall Street Journal reported. Texas-based Conoco's share includes US$173 million to be paid to the Chinese State Oceanic Administration during a two year period as well as US$18 million for projects beneficial to the Bohai Bay area. CNOOC will contribute US$76 million toward such projects, which will initially focus on environmental protection and cleanup efforts. Authorities halted production at the Peng Lai 19-3 offshore oil field after more than 3,000 barrels of oil and mud escaped into the bay during two incidents in June. Production resumed late last year and reached 40,000 barrels per day by the end of the first quarter. CNOOC owns a 51% stake in the field, which is operated by Conoco.