ConocoPhillips China to Comply with Order to Suspend Production at Peng Lai 19-3 Field

ConocoPhillips China, a wholly-owned subsidiary of ConocoPhillips COP -3.00%  , has been ordered by China's State Oceanic Administration (SOA) to suspend production activities at the Peng Lai 19-3 field in Bohai Bay, China, pending certain steps. ConocoPhillips China is developing a compliance plan with its co-venturer in the field, China National Offshore Oil Corp., and will be submitting it to SOA shortly.

Activities that are related to depressurizing the field will continue in a safe and environmentally responsible way.

As operator of the field, ConocoPhillips China has been leading the response to two incidents that occurred on June 4 and June 17 and resulted in the release of approximately 700 barrels of oil into Bohai Bay and 2,500 barrels of mineral oil-based drilling mud onto the seabed.

The Peng Lai 19-3 field has been operating at reduced rates since the incidents occurred in June. The shut down will have an impact on production from the field, which averaged approximately 56,000 net barrels of crude oil per day in 2010. ConocoPhillips holds a 49 percent interest in the Peng Lai 19-3 field which represents approximately 3 percent of the company's total annual production.

ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 29,900 employees, $160 billion of assets, and $244 billion of annualized revenues as of June 30, 2011. 

 

Source: MarketWatch