Conoco to set up special fund to handle oil spills
Updated: 2011-09-07 17:09
BEIJING -- US oil giant ConocoPhillips announced on Sept 7 that it will establish a fund to help it handle its responsibilities regarding oil spills that occurred in North China's Bohai Bay.
The fund will be designed to address ConocoPhillips' responsibilities in accordance with the relevant laws of China and to benefit the general environment of Bohai Bay, ConocoPhillips said in a statement on its website.
The ConocoPhillips statement came amid growing public outcry in China several days after China's maritime authority ordered ConocoPhillips China to suspend its operations in the bay's Penglai 19-3 oilfield because of continued oil leaks.
ConocoPhillips did not mention the size of the fund in its statement.
ConocoPhillips China has been accused of deceptively announcing that it had finished cleaning up the oil spills, contrary to evidence uncovered by the State Oceanic Administration (SOA). The company is facing lawsuits demanding compensation for those affected by the spills.
"ConocoPhillips deeply regrets these incidents and apologizes for the impact that the incidents have had on the Chinese people and the environment," said James J. Mulva, chairman and chief executive officer of Houston-based ConocoPhillips.
ConocoPhillips China will seek to work with relevant Chinese authorities and its business partner, the China National Offshore Oil Corp (CNOOC), regarding the establishment and operation of the fund, the statement said.