China Oil Spill escalates as ConocoPhillips faces law suits
Legal action is being prepared against ConocoPhillips China and CNOOC for the ongoing oil spill in the North China Sea.
ConocoPhillips China, a subsidiary of US-based ConocoPhillips, is set to face legal action for the Bohai oil spill, which has leaked over 2,500 barrels from nine separate sources since it was first discovered in June this year.
The State Oceanic Administration will file a law suit against the US giant to compensate for damages caused to the environment and local tourism. The Peng Lai 19-3 oil field is China's largest, producing around 50,000 barrels-per-day, and is jointly operated by ConocoPhillips China and China National Offshore Oil Corporation. The SOA has not, however, announced plans to sue the state-owned CNOOC.
Nonetheless, Chinese lawyer Jia Fangyi has filed a private lawsuit against both companies, demanding they put a halt to further pollution and clean up the existing spill. On top of the private action, the lawyer has pressured the two companies to set up a 10 billion yuan ($1.6bn) compensation fund to pay for damages and restore the local ecosystems.
Jia has also announced plans to bring the SOA to court for “administrative unresponsiveness” as they failed to publicly report the spill for almost a whole month. Jia is sceptical of the SOAs unwillingness to mention CNOOC in its law suit, as the company shares profits, and therefore responsibility, for the oil field.
Last month, ConocoPhillips China reported the overall spillage as 1,500 barrels, a figure which has since increased significantly to 2,500 barrels, despite claims that they had the situation “basically under control.” Both ConocoPhillips China and CNOOC have apologised for the accident and have assured the public that the spill should hopefully be cleaned up by the end of August.
