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Beijing Vows Stiff Penalties for Bohai Bay Oil Spills

As U.S. energy giant ConocoPhillips apologized Wednesday for oil spills in Bohai Bay, China has ordered a thorough investigation of the affected area to know the exact damage to the environment, reports said.

The State Council announced it will restrict any construction of new petrochemical projects along the bay as too much industrial development would be detrimental to the environment.

"Authorities should delve into the cause of the incident, severity of damage, and safeguard the legal interests of those who have suffered losses," said an official of the State Council in a press briefing.

In an attempt to appease China's concern, ConocoPhillips also announced its intention of establishing a fund to ameliorate the condition in Bohai Bay. But the State Council insists responsible parties must be punished according to the law.

IBTimes Australia quoted a report from Reuters on Wednesday that ConocoPhillips' CEO James Mulva informed the public that his subsidiary in China has stopped all its operations on the Penglai 19-3 oilfield following a suspension order from the State Oceanic Administration. The company had failed to stop oil leaks for three months.

In a related report, CNOOC, with 51 percent ownership of ConocoPhillips China, says the suspension of production will result in a loss of 40,000 barrels each day on top of 22,000 barrels a day lost to the closure of two wells along the oil spills.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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