ConocoPhillips (COP) Battling Leak in China's Bohai Bay
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China’s State Oceanic Administration is claiming two wells in Bohai Bay operated by ConocoPhillip’s (NYSE: COP) have polluted 1,650 square miles of sea, while another 3,400 square kilometers have been contaminated to a lesser degree.
The company is saying a total of 1,500 barrels of oil had been released, however both leaks are currently under control. On July 13, the agency announced the wells were still leaking oil.
As of now the spill is roughly equal to eighteen times the area polluted by last year’s spill in the port of Dalian.
Conoco was the first to report the wells were leaking back on June 4 while its partner in the Penglai field, China National Offshore Oil Corporation, didn’t release a public statement until July 1. During this time a large number of dead fish were washing up on nearby shores.
The State Oceanic Administration is suspected of lying to the public on July 5 when it announced, “There is no visible floating oil on the sea and the leak is now under control,” even though one official confirmed that oil was still visible. They are blaming ConocoPhillips for the oil leaks and fined them with the maximum plenty of 200,000 yuan.
The company is currently dismissing any liability for the leak and said there were, “no reports of impact to wildlife, fishing, or shipping activities.”
Conoco shares are down about 0.4 percent to $76.10 in pre-market action Monday morning.
The company is saying a total of 1,500 barrels of oil had been released, however both leaks are currently under control. On July 13, the agency announced the wells were still leaking oil.
As of now the spill is roughly equal to eighteen times the area polluted by last year’s spill in the port of Dalian.
Conoco was the first to report the wells were leaking back on June 4 while its partner in the Penglai field, China National Offshore Oil Corporation, didn’t release a public statement until July 1. During this time a large number of dead fish were washing up on nearby shores.
The State Oceanic Administration is suspected of lying to the public on July 5 when it announced, “There is no visible floating oil on the sea and the leak is now under control,” even though one official confirmed that oil was still visible. They are blaming ConocoPhillips for the oil leaks and fined them with the maximum plenty of 200,000 yuan.
The company is currently dismissing any liability for the leak and said there were, “no reports of impact to wildlife, fishing, or shipping activities.”
Conoco shares are down about 0.4 percent to $76.10 in pre-market action Monday morning.
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