Saturday, July 9, 2011

China orders offshore oil risks review after spill (AP)

SHANGHAI ? China's ocean administration has ordered oil companies operating offshore wells to assess risks of accidents following two spills off its east coast in a field operated by American energy giant ConocoPhillips.

The State Oceanic Administration issued a notice Friday saying offshore oil producers must thoroughly investigate any risks, review their emergency planning and also reassess environmental impact from their operations.

Offshore operators should learn from the accident and "comprehensively and deeply investigate oil spill risks and rectify them," it said.

The spills, which covered 840 square kilometers (324 square miles) in the Penglai 19-3 oil field in Bohai Bay, drew criticism from environmentalists and local media over the potential for damage to the environment and apparent delays in notifying the public.

But ConocoPhillips China, which operates seven production platforms in the Penglai area of Bohai, defended its response, saying it responded quickly to both leaks and informed authorities the day they were found.

Earlier this week, Houston-based ConocoPhillips and its Chinese partner in the field, state-owned CNOOC Ltd., said both leaks have stopped and cleanup work was nearly finished.

The delay in announcing details of the first leak, which was noticed June 4, was due partly to the difficulty of tracing the seepage from a natural fault, they said, noting that such leaks are rare and had not been seen before in Bohai.

The Oceanic Administration ordered offshore platform operators to assess risks from injecting water into oil reservoirs. The leaks last month occurred when such work was under way.

ConocoPhillips said it had suspended drilling and water injection until it ends its investigation and would alter its operating practices to prevent a recurrence of such a problem.

The State Oceanic Administration said 3,000 meters (3,300 yards) of sea booms and other devices were deployed to help clean up the spill.

The Penglai 19-3 oil field, China's largest offshore field, was jointly developed by ConocoPhillips China and CNOOC Ltd. The U.S. partner owns 49 percent of the field and is its operator while the Chinese partner has 51 percent.

The spill has raised concern over potential long-term impact to the area's very active fisheries industry.

Source: http://us.rd.yahoo.com/dailynews/rss/environment/*http%3A//news.yahoo.com/s/ap/20110708/ap_on_bi_ge/as_china_oil_spill

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